The
sale of Commodore International BV is complete. Tulip Computers NV
(Tulip Computers) and Yeahronimo Media Ventures Inc. (YMV) have reached
final agreement on the acquisition of Commodore International BV.
The acquisition is commensurate with the Letter of Intent signed by the
companies on 27 December 2004. Tulip Computers will receive €24 million
from YMV in instalments, with the final payment falling due by year-end
2010. The acquisition gives YMV international control of the Commodore
brand with a view to a new entertainment concept.
This
acquisition concerns the transfer of all rights to the Commodore brand
including its range of products, recently launched projects and partner
contracts, and Commodore’s licensing rights for the extremely
successful Direct-to-TV joystick.
Of
the total €24 million transacted, €4.5 million is payable in
instalments – without any connection to YMV’s trend in turnover –
starting today. YMV has agreed to pay the remaining €19.5 in yearly
tranches according to a scheme based on bandwidths set up and linked to
the trend in turnover at YMV. These payments will commence with effect
from 2006. Tulip Computers has received various types of guaranties as
security for these future payments.
Besides the basic
transaction, it has been agreed that Tulip Computers will remain active
via its subsidiary, 2L International, as a Commodore distributor in
YMV’s sales network and that Tulip Computers will provide support for
Commodore’s further development.
As previously indicated,
expectations are that this transaction will significantly boost the
annual results posted by Tulip Computers for financial year 2004, which
are due to be published shortly.
Distribution
of the Commodore brand is one of the initiatives arising from the
Technology Sales core business. The aim of this activity is to
commercialize technological know-how and intellectual property rights
by entering into licensing contracts and partnerships, largely in
tandem with the launch of new product lines.
After the sale of Commodore, Tulip will channel all its energy into building on and modernizing the current products by:
- focusing on the expansion of the Conceptronic brand, which has already demonstrated strong growth, inside and outside Europe
- accelerating development of the Tablet-pc product line and distributing it internationally under the PaceBlade name
- working closely with strategic partners to develop
new products and services, such as the Tulip Ego, a distinctive
lifestyle notebook.
Tulip Computers’ own product portfolio also
includes the Tulip product line, such as its PC for the medical
industry and the training and consultancy services offered via the
NewLevel.nl. training institute.
Tulip Computers sees the
commercialization of innovative technological concepts as a further
step towards building on its strategy to generate income from knowledge
and technology and, moreover, as the further realization of its aim to
distinguish itself in the ICT market through design.
Yeahronimo Media Ventures Inc. (YMV)
was founded in July 2004. YMV is headquartered in Century City,
California, with Dutch offices in Baarn. As a pioneer, YMV has rapidly
grown into a full-service distributor of digital media and content. As
an end-to-end provider of legal music downloads, sports programmes and
live concerts, YMV places the best artists, football and other sports
and music events at consumers’ fingertips for their full enjoyment. In
this respect, YMV runs the entire process from content-creation to
multi-channel distribution via broadband, cable and satellite.
YMV
previously obtained the rights from Tulip Computers for the digital
distribution of music, games and – shortly – films via the
CommodoreWorld portal in combination with the provision (also online)
of Commodore hardware products. |