Philips sells audio, video unit to Funai for $202 million

The company says the move of the consumer-focused entertainment group will allow for a stronger focus on its health division.

Royal Philips Electronics has signed a deal to sell its consumer-oriented lifestyle entertainment division to Funai Electric.

According to Philips' announcement today, Funai is paying 150 million euros ($202 million) for the division, which includes audio, visual, multimedia, and accessories. Funai will also license the Philips brand for five-and-a-half years.

Philips' lifestyle entertainment division is made up of a wide range of consumer products, including the company's home speakers, DVD players, and headphones. Although those products will still be available with Philips branding, Osaka, Japan-based Funai will be developing them.

According to Philips CEO Frans van Houten, the move is designed to refocus Philips' consumer operations around health and well-being. He also reassured customers about his company's consumer-focused future.

"I am confident that today's agreement with Funai, our partner for over 25 years, will create a promising future for Philips Audio, Video and Entertainment, and continuity for our customers," he said.

Philips expects the deal to close in the second half of 2013.

About the author

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

 

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