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SCM Micro sells digital TV business to Kudelski

Thu, 04/06/2006 - 7:26am
Brian Santo, CED

SCM Microsystems will sell its digital TV business - including its buildings in France - to the Kudelski Group  for $11 million in cash. The buyer is the corporate umbrella organization for Nagravision and its sister companies.

The operation includes SCM's controller chips used in set-top boxes that interface with the decryption modules, its line of DVB conditional access modules, and its portfolio of OpenCable CableCARD modules, which support conditional access systems from Conax, VideoGuard and Nagravision. SCM co-authored the OpenCable standard for removable security for digital broadcasting and has helped build a market for open systems in the digital TV industry.

The sale will not include SCM's HPNX verification tester for cable-ready TV receivers.

Andre Kudelski, Chairman and CEO of the Kudelski Group, said "removable security modules will become a key enabler of digital pay-TV services as the retail market continues to grow and develop."

SCM said it intends to focus its attention on leveraging its smart card and media reader businesses in emerging markets such as e-health, e-passport, secure physical access, electronic payment and digital photo printing.

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