Pace Micro buys digital TV technology firm
Acquires French-based Xcom Multimedia for up to £22m
Pace Micro has agreed to acquire digital television technology firm Xcom Multimedia in a mixed cash and equity purchase worth up to £22 million.
Initially, Pace will pay £18.1 million for Xcom including £800 000 in cash, with a subsequent payment based on Xcom's financial performance up until the end of 2002.
French-based Xcom sells digital set-top boxes and has an international client base throughout Europe, the Middle East and Asia.
The acquisition means that Pace will acquire technologies including a low cost digital TV adapter aimed at analogue switch-off, and two new conditional access systems.
The Digital TV Adapter (DTVA) developed by Xcom, delivers free- to-air or encrypted digital television services into non-pay TV homes and to secondary televisions in multi-television households.
Pace expects the deal to enhance its overall earnings in its next financial year.
As previously reported Pace plans to integrate Sega's Dreamcast console into its latest products, whilst Sega itself is planning to phase out Dreamcast as a stand-alone product.
Pace plans to use Dreamcast technology to enhance the TiVo-style digital video recorder it announced last year. The plan is to promote the new, "games-enabled" box to cable and digital TV companies as a way to entice customers to their networks. ®