Chinese monitor maker TPV Technology Group has announced plans to invest no more than USD15.4 million to acquire the exclusive rights of Philips' computer monitor business for five years.
Through this acquisition, TPV Technology Group will gain the rights to exclusively use the brand mark of Philips on its monitor products worldwide. In addition, the group will gain the rights over relevant intellectual property, employees, customers and inventory in the valid period of time. Queenie Tso, spokesperson of TPV Technology Group, says that the company will hold a special shareholders meeting to gain the approval of independent shareholders of the transaction. The company will announce the date for the meeting later.
Prior to this deal, TPV Technology Group and Philips signed a memorandum in July 2008, according to which Philips agreed to transfer its monitor business to TPV Technology Group and to authorize the group to use its brand, intellectual property, employees, customers and inventory for five years. In return, Philips was to charge certain fees in accordance with the revenue of the relevant products.
However, the new agreement between the two companies shows that TPV Technology Group will pay a one-off payment, instead of engaging in a profit-sharing arrangement.
Philips currently owns a 12.44% stake in TPV Technology Group.