Thomson to Buy Grundig's Set-Top Biz

Thomson Multimedia said Thursday that it has signed an agreement with Grundig
AG to acquire its Digital Intermedia Systems set-top-box business in the United

The companies did not release financial terms of the deal, which is subject
to regulatory approval.

Through the deal, Thomson is expected to add U.K.-based satellite service
British Sky Broadcasting Group plc to its list of clients. The DIS business also
brings technology targeting free, over-the-air services, the companies said in a
press release.

In the United States, Thomson makes set-top boxes for direct-broadcast
satellite providers DirecTV Inc. and EchoStar Communications Corp. It also
manufactures digital-cable modems for sale at retail and for lease through cable
companies, and it hopes to expand its business in the digital-cable set-top-box

The company also manufactures and markets a wide range of
consumer-electronics products, primarily under the RCA brand.