Technicolor to Acquire Cisco Connected Devices Division for $600 Million
On July 23, 2015, Technicolor announced that it has entered into an exclusive agreement with Cisco to acquire its customer premises equipment business for $600 million in a cash and stock transaction—reviewed by the boards of directors of both companies—that will be on a cash and debt-free basis. Under the terms of the agreement, upon the closing of the transaction, Cisco will receive approximately $450 million in cash and approximately $150 million in newly issued Technicolor shares, subject to certain adjustments provided for in the agreement. Wilson Sonsini Goodrich & Rosati is advising Technicolor in the transaction.
The transaction is expected to close by the end of the fourth quarter of 2015 or during the first quarter of 2016, subject to regulatory approvals and customary closing conditions. At the same time as the acquisition, Technicolor and Cisco will enter into a strategic partnership that will allow both companies to develop and deliver next-generation video and broadband technologies, with cooperation on Internet of Things solutions and services. Technicolor and Cisco also have signed a long-term patent cross-licensing agreement that covers specific intellectual property and patents from both companies.
The WSGR team advising Technicolor in the transaction includes the following:
For more information, please see Technicolor's press release.