Philips spin-off NXP Semiconductors plans to acquire the Broadband Media Processing (BMP) business of Conexant Systems.

Conexant’s BMP business unit provides chips for various cable, IPTV and satellite TV products.

The purchase price will be at least $110 million, and it may be as much as $35 million more if the unit hits performance benchmarks. Conexant’s BMP business accounted for $205 million in revenue in 2007.

NXP intends to pair the BMP unit with its set-top box (STB) and digital TV operations. The combined operations will create a Top 3 player in digital video systems, NXP calculates.

Conexant's BMP business offers a suite of digital STB components and system solutions for worldwide satellite, cable and IP entertainment broadcasting networks. The company's product offering includes silicon tuners, demodulators, MPEG audio and video decoders, and DOCSIS modems.

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