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February 3,
2009
PRESS
RELEASE
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Ericsson
and STMicroelectronics Complete Deal to Create World Leader in Semiconductors
and Platforms for
Mobile Applications
Geneva,
Switzerland and Stockholm, Sweden – February 3, 2009 - STMicroelectronics
(NYSE:STM) and Ericsson (NASDAQ:ERIC) today 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 on August 20, 2008.
The new company is
designed for long-term stability and is set to become an industry leader in
product research, as well as design, development, and the creation of
cutting-edge mobile platforms and wireless semiconductors. 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 exciting industry leaders.
Ericsson
contributed USD 1.1 billion net to the joint venture, out of which USD 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
8000 people - roughly 3000 from Ericsson and approximately 5000 from ST - the
new global leader in wireless technologies is headquartered in Geneva,
Switzerland.
The new company
will meet its customers at the Mobile World Congress in Barcelona from Feb
16th
to Feb 19th.
Notes
to editors:
Announcement on
August 20, 2008:
www.ericsson.com/press/releases/20080820-1244729.shtml
Multimedia content
from the press conference on August 20 is available at the broadcast
room: www.ericsson.com/broadcast_room
Photos are
available at
www.ericsson.com/ericsson/press/photos/ericsson_st.shtml
Carl-Henric
Svanberg’s bio and photos are available at
www.ericsson.com/ericsson/corpinfo/management/carl-henric_svanberg.shtml
Carlo Bozotti’s bio
and photo is available at
www.st.com/stonline/company/bio/bozotti.htm
About
Ericsson
Ericsson
is the world’s leading provider of technology and services to telecom operators.
The market leader in 2G and 3G mobile technologies, Ericsson supplies
communications services and manages networks that serve more than 250 million
subscribers. The company’s portfolio comprises mobile and fixed network
infrastructure, and broadband and multimedia solutions for operators,
enterprises and developers. The Sony Ericsson joint venture provides consumers
with feature-rich personal mobile devices.
Ericsson
is advancing its vision of ‘communication for all’ through innovation,
technology, and sustainable business solutions. Working in 175 countries, more
than 70,000 employees generated revenue of USD 27 billion (SEK 209 billion) in
2008. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed
on OMX Nordic Exchange Stockholm and NASDAQ
For
more information, visit www.ericsson.com or
www.ericsson.mobi.
About
STMicroelectronics
STMicroelectronics
is a global leader in developing and delivering semiconductor solutions across
the spectrum of microelectronics applications. An unrivalled combination of
silicon and system expertise, manufacturing strength, Intellectual Property (IP)
portfolio and strategic partners positions the Company at the forefront of
System-on-Chip (SoC) technology and its products play a key role in enabling
today’s convergence markets. The Company’s shares are traded on the New York
Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2008, the
Company’s net revenues were $9.84 billion. Further information on ST can be
found at www.st.com.
FOR
FURTHER INFORMATION, PLEASE CONTACT
Ericsson
Media
Ericsson Corporate
Public & Media Relations
Phone: +46 10 719
6992
E-mail:
press.relations@ericsson.com
Investors
Ericsson Investor
Relations
Phone: +46 10 719
0000
E-mail:
investors.relations@ericsson.com
STMicroelectronics
Media
Maria Grazia
Prestini
Phone: +41 22 929
6945
E-mail:
mariagrazia.prestini@st.com
Investors
Tait
Sorensen
Phone:
+1-602-485-2064
E-mail:
tait.sorensen@st.com