Philips Electronics to sell its CSI business to Bosch

AUGUST 8--Royal Philips Electronics (Amsterdam, The Netherlands; www.philips.com/newscenter) and Robert Bosch GmbH (Ottobrunn, Germany; www.bosch-presse.de) have signed a preliminary agreement regarding the sale of Philips' business unit Communication, Security & Imaging (CSI). Completion of the transaction, which is subject to customary consultation procedures with trade unions and workers councils and clearance by the competition authorities, is expected to take place later this year. Financial details were not disclosed.

Philips CSI is headquartered in Eindhoven, the Netherlands, operating in 35 countries worldwide and employing approximately 1300 people, all of whom will transfer to Bosch. CSI designs, manufactures, sells, and supports a broad range of professional communication and security products and systems including closed-circuit video surveillance and public address systems. CSI is profitable with sales of over EUR 300 million in 2001.

With the acquisition of Philips CSI, which will be placed within Bosch Sicherheitssysteme GmbH, Bosch strengthens its market position in systems and components for video surveillance, where it already employs 4200 people. This acquisition will also give Bosch access to international markets for security systems, especially in North America, South East Asia, and China.