Technicolor SA (Euronext Paris: TCH; OTCQX: TCLRY) says that, following the spin out of its Technicolor Creative Studios (TCS) business, the remaining units will rebrand as VANTIVA. VANTIVA will comprise the current Connected Home and DVD Services business units. Subject to shareholder approval, the company expects to adopt VANTIVA as its corporate name by the end of the third quarter of this year.
The DVD Services business will further rebrand to VANTIVA Supply Chain Services.
Luis Martinez-Amago, current president of the Connected Home Division, is expected to be named VANTIVA’s CEO after the split. He said in an interview earlier this month that he plans to build on the company’s current strengths in gateways and Internet of Things (IoT) to diversify the customer base and markets the Connected Home operations currently serve. Martinez-Amago is interested in “sizeable opportunities” adjacent to the company’s current activities that will address a wider range of requirements for his existing customers. He said that mergers and acquisitions will be considered, although he suggested that such a strategy is unlikely in IoT and would not be necessary to enable his short-term focus.
That focus will fall on three areas:
- Edge computing
- Sensors
- Software applications (where Martinez-Amago suggested M&A might make sense).
Martinez-Amago said edge computing products would leverage technology derived from the company’s current work in broadband gateways and WiFi extenders and could be brought to market relatively quickly. He added the company is developing partnerships with players in the areas he’s targeting for expansion, with an eye toward creating an effective go-to-market strategy.
The expansions likely will launch first in the Americas; North America is the source of 60% of the current company’s business, Martinez-Amagao said. Nevertheless, VANTIVA will maintain its headquarters in Paris.
