Mergers & Acquisitions
Genesis Microchip, Inc. Acquired By STMicroelectronics NV
March 21, 2008
CSI No. 37 Genesis Microchip, Inc. was acquired by CSI No. 371 STMicroelectronics NV in a semiconductor industry transaction earlier this year.
Photo courtesy of Genesis Microchip
Genesis Microchip's Canadian office.
The company moved its corporate
office to California in February 2002.
Genesis Microchip, Inc., a $214.6 million (2007 figure) integrated circuit manufacturer in Santa Clara, California was acquired on January 25, 2008 by STMicroelectronics NV, a $9.8 billion semiconductor manufacturer based in Geneva, Switzerland for a reported price of $328.81 million or $8.65 in cash per common share.
The acquisition will allow STMicroelectronics, a leader in digital consumer technologies, to further develop its video processing and digital interconnect technologies, thus, strengthening its position in the $1.5 billion digital TV market, according to a company press release. Genesis possesses over 210 United States and foreign patents related to flat-panel computer monitor and video image processing technologies, according to its annual report.
"Now that we have combined the two companies, ST will have the products, technology, IP and expertise to offer best-in-class integrated DTV solutions that our customers are increasingly demanding," said Philippe Lambinet, Corporate Vice President and General Manager of STMicroelectronics' Home Entertainment & Displays Group.
Genesis itself had acquired some four companies since 1999 to improve its technology and market position, according to its annual report. The acquisitions were as follows: Paradise Electronics, Inc. in 1999; Sage, Inc., in 2002; and the technology assets of VM Labs, Inc., in 2002. Genesis almost acquired Pixelworks, Inc. in August 2003 but that offer was later mutually withdrawn. Genesis has regional offices in seven other countries.
Genesis' credit standards were among the highest of any public company in 2005 garnering it a 1.40 score on a scale of one to five, one being the best and five being the worst, and a No. 37 ranking out of 2,036 companies in the 2005 Credit Standards Index (CSI), an annual ranking of public company credit and effeciency standards published by CreditPulse.
In calendar year 2006 (fiscal year ended March 31, 2007 for Genesis), Genesis' credit standards fell slightly as a result of profitability and operating cash plumeting from 7% and 18.3% respectively in calendar year 2005 to -67% and 1% respectively in 2006. Genesis' most recent credit statistics and annual revenue figures are shown in the accompanying chart.
