NXP to acquire BMP business

, the independent semiconductor company founded by Philips, is to acquire the Broadband Media Processing (BMP) business of

.

NXP’s existing set-top box and digital TV operations will be combined with Conexant’s BMP business to create what NXP describes as a ‘top three player’ in digital video systems.

Conexant’s BMP business, which provides solutions for satellite, cable and IPTV applications, accounted for $205m in revenue in 2007.

Under the terms of the deal, NXP will pay Conexant an initial sum of $110m, and up to $35m based on the achievement of certain revenue targets over the period from closing through to 2009.

When the transaction closes, approximately 700 Conexant employees at locations in the

,

,

,

and

will join NXP’s Home Business Unit. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in the next 60 days.