Agreement Signed To Acquire DiBcom

Parrot Agrees to Acquire Dibcom

Paris, July 28, 2011, 5:40 pm CET – Parrot, a global leader in wireless devices for mobile phones, is announcing that it has signed an agreement with a view to acquiring 100% of the capital of the French technology company DiBcom, the digital television and radio specialist for the automotive industry in particular.
This operation is particularly strategic for Parrot, which is going to be able to harness unique know-how in the multi-standard digital radio and television field, as well as a broader customer base in the automotive sector. At the same time, the development of a complete solution, incorporating all the technologies developed by both companies, represents a significant competitive advantage and adds further value, particularly on the growing market for infotainment and multimedia car radios.

DiBcom designs and markets high-performance integrated chipsets enabling low-power and high mobility digital television and radio reception, for all transmission standards (DVB-T, ISDB-T, ATSC, CMMB, etc.), thanks in particular to a programmable core for signal processing, developed by DiBcom. Founded in 2000, DiBcom has already sold more than 25 million integrated chipsets enabling digital radio television to be received whatever the transmission settings used, in Europe, Asia, Australia, South America and Japan. Its solutions are used for receiving radio and television in handheld multimedia products as well as vehicles, sold worldwide by manufacturers including Audi, BMW, Mercedes, Porsche, Volvo or Garmin.

The transaction consists of €15.9 million to purchase share capital and a net debt buyback (initially mainly convertible bonds) for approximately €12 million. The finalization and payment are expected for September 30th, 2011 at the latest, once the standard suspensive conditions have been cleared. In 2011, DiBcom is forecasting around €15 million in revenues, with a gross margin of approximately 45% and -€4 million in EBIT. DiBcom has around 90 employees, with 50% on R&D, and offices in Europe and Asia. Parrot plans to incorporate DiBcom’s accounts from September 30th, 2011.

Parrot and DiBcom have organizations and product portfolios that will dovetail effectively together. The possible synergies, including the pooling of resources and convergence of product offerings, make it possible to envisage an improvement in DiBcom’s profitability and an increase in value creation for the solutions developed by Parrot.

As Henri Seydoux, Parrot’s founder, chairman and chief executive officer, concludes: “DiBcom today has an advanced technology that is particularly well suited to the automotive industry. This acquisition project is in line with Parrot’s strategy, aiming to have a suite of innovative infotainment and multimedia connectivity solutions covering the promising operational scenarios we have identified. It is intended to accelerate and supplement the R&D work carried out since 2010, create value for our OEM and retail clients, and further strengthen our presence in relation to auto manufacturers. With DiBcom, Parrot will be able to harness a further competitive advantage in order to sustainably move forward with a strategy for strong growth”.

Parrot, a global leader in wireless devices for mobile phones, stands on the cutting edge of innovation. The company was founded in 1994 by Henri Seydoux as part of his determination to drive the inevitable breakthrough of mobile phones into everyday life by creating high-quality, user-friendly wireless devices for easy living. Parrot has developed the most extensive range of hands-free systems on the market for cars, motorbikes and scooters, including wireless multimedia products geared towards audiovisual applications. In 2008, Parrot launched a new prestige line of high-end products bearing the hallmark of renowned artists and in 2010, the AR.Drone, the first quadricopter piloted via wi-fi and using augmented reality.

Parrot, headquartered in Paris, currently employs more than 550 people worldwide and generates 85% of its sales overseas. Parrot is listed on NYSE Euronext Paris since 2006. (FR0004038263 – PARRO)
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DiBcom is at the heart of digital TV. As a fabless semiconductor company that designs high-performance chipsets, DiBcom enables low-power mobile and stationary TV reception everywhere. The company’s solutions are used in automotive, PC/peripheral, Consumer Electronics, mobile phones and other handheld devices. DiBcom has extensive experience solving real-world digital terrestrial television (DTT) reception problems and has overcome the main technological barriers to high-quality service. The company has developed a number of patented algorithms and architectures for fast and accurate channel estimation and high Doppler compensation. Its chipsets are compliant with the current worldwide Digital Video Broadcast standards DVB-T, DVB-H, DVB-SH, T-DMB, ISDB-T and CMMB.
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