LONDON (Brand Republic) - Carlton Communications has confirmed that it has reached a $2.065bn (£1.43bn) agreement with Thomson Multimedia for the sale of its film and video processing company Technicolor.
The terms of the deal involve $1.3bn (£0.93m) in cash and 15.5m Thomson shares valued at $717m (£495m), based on Friday鈥檚 closing price.
The agreement also involves Carlton making a $15m investment in TAK, an interactive TV joint venture between Thomson and Microsoft.
Technicolor is the world鈥檚 largest manufacturer and distributor of videocassettes and DVDs with a turnover of $1.6bn for the year to September 30. It will keep its existing management team led by Lanny Raimondo, who will become a member of Thomson鈥檚 executive committee.
Thomson Multimedia, which makes RCA televisions and digital set-top boxes, has been making a series of acquisitions to boost its digital media business. Last week, it bought Royal Philips Electronics NV鈥檚 professional broadcasting unit.