Ericsson and STMicro finalise joint mobile venture
New company will be involved in product research, design and development, and the creation of wireless semiconductors
Ericsson and STMicroelectronics have completed a deal announced last year to merge Ericsson Mobile Platforms and ST-NXP Wireless into an equal joint venture.
The new company will be involved in product research, design and development, and the creation of cutting-edge mobile platforms and wireless semiconductors.
It will begin supplying to top handset manufacturers and other industry leaders, with meetings scheduled for the Mobile World Congress in Barcelona later this month.
Ericsson contributed $1.1 billion to the joint venture, out of which $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 COO of STMicroelectronics, will lead the joint venture as president and CEO. Both companies will appoint 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.
Headquartered in Geneva, Switzerland, the new company will employ nearly 8,000 people – roughly 3,000 from Ericsson and 5,000 from ST.