New Medium Enterprises, developer of the Versatile Multilayer Disc format,entered into a Memorandum of Understanding with MPEG Technology Company to buy a controlling stake in it. The company specialises in the supply of high definition products.

Its current turnover of this division is approximately 10 million US dollars and it has an impressive retail and OEM client list worldwide. "MPEG Technology Company will give NME an immediate, well established trading arm with a ready made client book for our products. In addition, MPEG will bring us much needed experience and regional market knowledge," commented NME CEO Mahesh Jayanarayan. He continued, "This acquisition will give us quick market access and will accelerate our learning curve, thus avoiding potentially costly business mistakes".

MPEG is part of a leading electronics developer with their own R&D facility and manufacturing base in China. The company has a trading history going back over a decade. As a leading ODM, MPEG develops and markets HDTV, PVRs, HD IPTV and Set Top Boxes, PMPs. The group employees over 350 people, who include approximately 70 top engineers.

MPEG has technology relationships with LSI (USA), Cirrus Logic (USA), Panasonic (Japan) , Sigma Design (USA), CMO (Taiwan), SVA NEC (China), Ti (USA), Auvitek (USA). The company's main clients in the region include TTE (TCL), SVA, Action, Philips, BBK, Skyworth, Aigo, Chonghong and Hiteker.

MPEG Technology's CEO, Ms. Georgia Huang commented, "The marriage between NME and MPEG Technology will provide us the desired opportunity to develop and market high end HD electronic solutions in the Chinese and Southeast Asian region. We further believe that our relationship with NME will pave the way for MPEG to accelerate its already enviable growth and transform it into a truly multinational enterprise. Our customer base and relationships will provide NME a fast track route to market with its products."

Story filed 24.04.06