Tektronix Inc., the broadcast television technology developer, on Monday said it plans to sell its video content production business to the Grass Valley Group Inc., a California-based investment group, led by Terence Gooding.
Although financial terms of the deal were not disclosed, Wilsonville, Ore.-based Tektronix said it will have a 10% equity stake in the new venture, to be based in Nevada City, Calif., with an engineering design center in Beaverton, Ore. Venture will take the Grass Valley Group name.
As part of the deal, Grass Valley will acquire Tektronix’s broadcast equipment, brands and products, including the Profile digital video server and the Grass Valley router, switcher and modular product lines.
The new company is expected to have annual sales of $250 million in the year 2000, focusing not only on television broadcasting, but emerging markets from the Internet to electronic projection, as well. It will have 700 employees worldwide.
Gooding will serve as chairman and CEO of Grass Valley Group. Tim Thorsteinson, Tektronix’s video and networking division prexy, will join the new company as prexy and CEO.
Gooding is currently co-chairman of Wavetek Wandel Goltermann Inc., the second-largest international communications test company.
The companies said they expect to close the transaction, subject to conditions including regulatory approval, by the end of September.
Grass Valley already provides broadcast television equipment worldwide, with 80% of TV signals worldwide passing through its products.
Tektronix in June announced plans to exit the video business and form two separate, publicly traded companies. One company will be comprised of its measurement business, while the other will be comprised of its color printing division.