NXP to sell off Sound Solutions business
NXP is to sell its Sound Solutions business to Dover Corporation – a holding company for a number of operations in diverse business areas. The one taking over NXP’s Sound Solutions unit is called Knowles Electronics based in Illinois.
NXP’s Sound Solutions is included in NXP’s Standard Products segment.
Knowles will acquire Sound Solutions for $855m in cash. NXP will become Knowles’ exclusive source for certain high performance mixed signal semiconductors. The transaction is expected to close in Q1 2011.
Knowles manufactures high performance transducers used for hearing aids and other acoustic applications, and designs, manufactures and assembles MEMS microphones for personal mobile device and communications markets.
Sound Solutions’ speaker and receiver business for mobile phones is seen as complementing Knowles’ solutions in the hearing aid component and MEMS microphones markets.
“The micro-acoustic components market offers significant growth potential, which can be best achieved through a focused company, dedicated to this market and with a complete suite of complementary products required for a leadership position,” says Rick Clemmer, NXP CEO.
The revenue of the Sound Solutions business was approximately $255m in the first three quarters of 2010.
About 1,000 Sound Solutions employees, who are currently based in Sound Solutions’ headquarters in Vienna, Austria, and its facilities located in Beijing, China, will join Knowles, says NXP.
NXP and Technicolor have announced that Nutune, a joint venture formed in June 2008 to combine NXP’s and Technicolor’s can tuner module operations, has been sold to affiliates of AIAC (American Industrial Acquisition Corporation).
Nutune, headquartered in Singapore, has 2,950 employees worldwide, including 2,800 manufacturing employees in Batam, Indonesia. The revenue of Nutune was approximately $79m in the first three quarters of 2010. Details of the acquisition were not disclosed.