Parthus Announces Intention to Acquire Remaining Minority Interest in Silicon Systems Design from STMicroelectronics in Exchange for a Shareholding in Parthus Technologies PLC
Dublin, Ireland - May 09, 2001 - Parthus Technologies plc
(Nasdaq: PRTH, LSE: PRH), a leading provider of platform-level
intellectual property, today announced its intention to acquire the
remaining minority interest in Silicon Systems Design (SSD) from
STMicroelectronics (NYSE: STM) in exchange for a shareholding in Parthus
Technologies plc pending approval by Parthus' shareholders.
SSD is the original Parthus/ST entity that currently undertakes IP
Creation activities for STMicroelectronics. Parthus currently owns 80
percent of SSD, with STMicroelectronics owning the remaining 20 percent.
Under the terms of the proposed agreement, Parthus will acquire the
remaining minority interest in SSD for $13 million in cash and an amount
of shares not to exceed a 3% shareholding in Parthus. The equity
consideration will be satisfied by the issue of new ordinary shares in
Parthus, to be issued immediately following shareholder approval at an
Extraordinary General Meeting to be convened shortly.
This announcement coincides with today's announcement of a multi-year
portfolio licensing agreement between the two companies. Both
announcements mark an important transition to a long-term IP Licensing and
royalty relationship. The acquisition of the remaining 20% of SSD enables
Parthus to acquire and combine the significant engineering resources of
SSD with Parthus' own resources to support the accelerated level of
licensing activity and development required by this and other recent
deals. In addition, the acquisition of SSD and resultant ST shareholding
in Parthus Technologies plc underpins the strategic relationship between
the two companies.
"Since ST first started outsourcing selected IP development to Parthus
in 1993 we have built a fruitful and mutually beneficial relationship,"
commented Aldo Romano, Corporate VP and General Manager of ST's
Telecommunications and Peripheral/Automotive Groups. "By acquiring an
equity stake in Parthus we underline our intention to extend the
relationship, licensing IP for use in ST's system-on-chip products for
connectivity and multimedia."
Peter McManamon, Executive Vice President Corporate Development at
Parthus said: "ST has been an invaluable partner since we founded the
company over eight years ago. Today's decision to acquire ST's minority
interest in SSD in exchange for a direct shareholding in Parthus reflects
the technical and business evolution of this relationship."
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