Technicolor announced it is in negotiations for a strategic transaction relating to its patent licensing business.
“While there is no assurance that a transaction will take place, Technicolor is confident it will reach an agreement,” said Technicolor.
“This is in line with Technicolor’s objective to simplify the group’s structure and allocate its capital and resources to its operating businesses.”
In the course of negotiating the transaction, Technicolor said it suspended its commercial patent licensing discussions.
“Technicolor has, however, reached a settlement agreement with Samsung Electronics with regard to ongoing litigations in Germany and France,” added Technicolor.
“The Technology segment is consequently expected to generate around €70 million of Adjusted EBITDA (out of which €75 million from the patent licensing business) and around €25 million of free cash flow, instead of an estimated €115 million of Adjusted EBITDA and €100 million of free cash flow incorporated in the low end of the group’s full year guidance.
“The performance of the operating businesses is in line with the Group’s expectations.
“Consequently, Technicolor anticipates generating an Adjusted EBITDA around €370 million, including a negative forex impact comprised between €5 million and €10 million, and a free cash flow of around €75 million before cash settlements in the Cathode Ray Tube cartel case.”