Philips buys 51 pct in Ishoni Networks for 25 mln usd
AMSTERDAM (AFX) - Royal Philips Electronics NV said it acquired a 51 pct stake in California-based Ishoni Networks for 25 mln usd.
The agreement allows for joint product development, sales, marketing and production. Intellectual property rights are also shared, while Philips will have the right to sell Ishoni products under the Philips brand.
Philips said the acquisition will be "slightly dilutive" in the first year.
Ishoni produces silicon systems and software for household devices facilitating broadband communications. The company provides security, voice and networking solutions to cable and telecom network operators. Ishnoi employs 170, including 135 engineers in Santa Clara and Bangalore.
Philips said the companies expect to expand the cooperation to include development of fiber, fixed wireless and satellite applications in the future, in addition to cable, voice over IP and digital subscriber line products already available.
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