More Broadcast Vendor M&A: Technicolor Completes Disposal of Grass Valley Head-End Business

Posted by Joe Zaller
May 04 2011

Technicolor has completed the final element of its disposal of the Grass Valley broadcast business. The company announced that it has finalized the sale of the former Grass Valley head-end business to FCDE, an investment fund financed by the FSI (Fonds Stratégique d’Investissement) and major banks and insurance companies operating in France.

Similar to the previous Grass Valley disposals, includingthe sale of the Grass Valley to Francisco Partners, and the sale of its transmission business to PARTER Capital, Technicolor said “the offer values the head-end business for a non-material amount.”

Technicolor’s head-end business offers a variety of video compression and content processing solutions. It has 525 employees and operates in 15 countries. In 2009 the head-end business recorded revenues of €61m, which Technicolor says was 16% of the total Grass Valley perimeter revenues and 20% of its operating loss.



Key Elements of the Deal

  • The scope of the offer includes all assets and employees of the head-end business. This comprises the entire product portfolio, including video encoders/decoders, MPEG processors, video servers, datacasters, network management, monitoring and switching product lines. The offer also comprises sales and customer services functions as well as the management and support functions.
    The FCDE will also enter a trademark agreement with Technicolor for the use of the Thomson trademark
  • The offer values the Head-end business for a non-material amount
  • Based on the book value of the assets, the Group expects to register a non-cash loss for this disposal



Related Content:

Press Release: Technicolor completes the disposal of Grass Valley Head-end business to the FCDE

Technicolor Receives Binding Offer for Video Head-End Business

Press release: Technicolor completes disposal of Grass Valley transmission business

Technicolor decides not to sell digital signage provider PRN

Technicolor completes sale of Grass Valley to Francisco Partners



Comments are closed.

%d bloggers like this: