Ericsson and STMicroelectronics Complete Joint-Venture Deal

STMicroelectronics and Ericsson have announced the closing of their agreement merging Ericsson Mobile Platforms and ST-NXP Wireless into a 50/50 joint venture. The deal was completed on the terms originally announced last August.

The JV begins as a major supplier to four of the industry's top five handset manufacturers, who together represent about 80 percent of global handset shipments, as well as to other industry players.

Ericsson contributed US$1.1 billion net to the joint venture, out of which US$0.7 billion was paid to ST. Prior to the closing of the transaction, ST exercised its option to buyout NXP's 20 percent ownership stake of ST-NXP Wireless.

Alain Dutheil, presently CEO of ST-NXP Wireless and Chief Operating Officer of STMicroelectronics, will lead the joint venture as President and Chief Executive Officer.

Governance is balanced. 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 - roughly 3,000 from Ericsson and approximately 5,000 from ST - the new firm is headquartered in Geneva, Switzerland.

Posted to the site on 3rd February 2009