St Ericsson sells the assets for GNSS mobile connectivity and thus avoids "staff restructuring costs" and "other costs" associated with corporate restructuring. This was communicated by the joint venture between Stmicroelectronics and Ericsson, stating that it has signed "a definitive agreement for the sale of the assets and intellectual property rights (IPR) associated with the GNSS (global navigation satellite system) business to an important company in the semiconductors".
In addition to the assets and IPRs associated with the GNSS business, the agreement provides that "an international team of 130 industry experts operating in Daventry (UK), Bangalore (India) and Singapore will be transferred to the acquiring company". Completion of the transaction "is subject to regulatory approvals and customary terms, and is expected to close in August 2013."
St-Ericsson believes that “the proceeds from the sale, together with the avoidance of personnel restructuring charges and other costs related to the restructuring, will reduce the joint venture's cash requirements by approximately $90 million".
"The operation - underlines the president and CEO, Carlo Ferro - is a confirmation of the high levels of innovation developed by St-Ericsson in mobile navigation systems and marks a further important step forward in the execution of the decision taken by our shareholders to exit from St-Ericsson. I am delighted that this team can continue to contribute to the development of cutting-edge technologies and that it has found a new place with a leading company in the semiconductor sector”.
At the opening in Piazza Affari, the stock of Stm gains more than two points, among the best rises of the Ftse Mib.
