French broadcast equipment and services provider and STB manufacturer Technicolor has received a binding offer from German private equity firm Partner Capital to acquire its transmission equipment business, operating under the Thomson Broadcast brand. The transmission activity is one of the three units of Grass Valley, along with broadcast – already sold to Francisco Partners – and head-end. It provides transmission products for terrestrial TV and radio, has 291 employees in five countries, and generated around EUR 43 million of revenue and 26 percent of Grass Valley's operating loss in 2009. The offer values the transmission business for a non-material amount and Technicolor will receive no cash proceeds from the disposal. Based on the assets' book value, Technicolor expects to register a non-cash loss for the disposal in its 2010 results. The transaction is due to close in the first quarter of 2011 subject to regulatory approvals and consultations.
