Ericsson contributes $1.1 billion net to the joint venture
STMicroelectronics, a manufacturer of semiconductor products, and Ericsson have announced the closing of their agreement merging Ericsson Mobile Platforms and ST-NXP Wireless into an equal-stake joint venture. The deal was completed on the terms originally announced on August 20, 2008.
According to Ericsson, the new company is designed for long-term stability as well as design, development, and the creation of mobile platforms and wireless semiconductors.
Ericsson contributed $1.1 billion net to the joint venture, out of which $0.7 billion was paid to STMicroelectronics. Prior to the closing of the transaction, STMicroelectronics exercised its option to buy NXP’s 20% ownership stake of ST-NXP Wireless.
Alain Dutheil, presently CEO of ST-NXP Wireless and COO of STMicroelectronics, will lead the joint venture as president and CEO.
Governance is balanced and each parent appoints four directors to the board with Carl-Henric Svanberg, president and CEO of Ericsson, as the chairman of the board and Carlo Bozotti, president and CEO of STMicroelectronics, as the vice chairman.
Employing about 8,000 people, with roughly 3,000 from Ericsson and approximately 5,000 from STMicroelectronics, the new wireless technologies firm is headquartered in Geneva, Switzerland.