|[March 29, 2005]
Thomson Acquires Inventel, a Leader in Telecom Access Devices and Wireless Technologies
PARIS --(Business Wire)-- March 29, 2005 -- Acquisition strengthens Thomson's technology portfolio, design capabilities, and products and services offering to telecom operators worldwide
Thomson (NYSE:TMS) (Euronext:18453) has acquired Inventel, a leading provider of innovative voice and data solutions to telecom operators and internet service providers (ISP). Combining Inventel's expertise with Thomson's world leading positions in DSL and video technologies and solutions, will enable the Group to expand its customer base, market reach and ranges of multiple-play gateways.
The private company based in Paris, Inventel, is a leading partner of telecom operators in Europe. Its revenues have increased threefold between 2003 and 2004. The company has a strong focus on research & development, engineering and design services. With top-tier market positions in home gateways for fixed broadband network operators in Europe and in digitally enhanced cordless telephony (DECT) worldwide, Inventel's expertise in wireless voice and data communications (WiFi, Bluetooth) has gained the company a solid customer base and a reputation for innovation, high quality and reliability.
This acquisition will bring synergies in terms of technology, products and services, customer base and geography. The Group will expand and complement its in-house design capabilities, its DECT and wireless technology offering, its portfolio of multiple-play gateways and "home networking" products and its solutions for the growing 'hotspot' market (out-of-home wireless internet access market). Thomson also believes that this acquisition will generate additional growth opportunities for the Group with telecom operators and ISPs outside Europe, particularly in the American market.
The acquisition cost is in line with Thomson's acquisition criteria. Thomson has given the opportunity for the managers of Inventel, who are its majority shareholders, to receive most of their consideration in Thomson treasury shares. To maintain its buy-back program, Thomson will purchase in the market an amount of its shares equivalent to that contributed in this transaction (estimated at 3.2 million shares). The Inventel acquisition is expected to be neutral to Thomson's core business profitability in its first quarter of ownership and positive thereafter.
Inventel will be part of Thomson's Access Platforms & Gateways Business Unit within the Systems & Equipments Division. This Business Unit is the world leader in access products and solutions to satellite, cable and terrestrial operators worldwide. It also offers a broad range of telecom systems and equipment such as voice products, high-speed DSL modems, IP video boxes and multiple-play gateways.
"Increasing our already substantial business with telecom operators is one of our important areas of development, as highlighted in our Two-Year Plan. This acquisition, which is likely to be followed by others, will further Thomson's objective of strengthening its role as a strategic supplier and partner to this important customer base," said Frank Dangeard, Chairman & CEO of Thomson.
About Thomson - Partner to the Media & Entertainment Industries
Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and equipment, and technology to help its Media & Entertainment clients - content creators, content distributors and users of its technology - realize their business goals and optimize their performance in a rapidly changing technology environment. The Group intends to become the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. For more information: www.thomson.net.
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