Irdeto has strengthened its market position and reconfirms its place as a top-tier content security player, while Philips will continue pursuing open-standards Digital Rights Management (DRM). Royal Philips Electronics (NYSE: PHG, AEX: PHI) and Irdeto, a world leader in content security and a subsidiary of multinational media group Naspers (NASDAQ: NPSN and JSE: NPN), announced that they have reached preliminary agreement on the terms of the transfer of Philips' conditional access (CryptoTec) business unit to Irdeto. No financial details of the transaction were disclosed. Philips' CryptoTec business unit develops and sells content protection (more generally known as "conditional access") products such as advanced security systems for cable, satellite, terrestrial and IP networks under the name CryptoWorks. In addition to conditional access for digital TV, Irdeto also offers softwarebased content security for IPTV services as well as multiple DRM and conditional access products for premium mobile content and mobile TV (DMB and DVB-H). Hans Streng, CEO, Philips Digital Networks said, "The conditional access industry is moving toward consolidation, and Philips has been looking into various options for the CryptoTec business. Reaching this agreement with Irdeto is considered to be the solution that offers the best future-proof direction for customers and staff. CryptoTec will thus find a new home where conditional access is the absolute core of the business. Philips will continue focusing on promoting open-standards DRM." "With the acquisition of Philips' CryptoTec, Irdeto will strengthen its position in the pay media industry, and will now have over 300 customers on six continents. Customers using CryptoWorks will continue to be fully supported and in addition to this can now also benefit from a broader choice of content security solutions," said Graham Kill, CEO of Irdeto. The acquisition will also enable Irdeto to further strengthen its position in China, where it currently already plays a market-leading role in securing China's digital television migration, with nearly 50 customers in that country. Philips CryptoTec employees will transfer to Irdeto when the transaction is completed, which is expected within the next months, subject to customary regulatory clearances and procedures