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Philips Acquires iPod Accessory Developer

Philips Electronics announced today plans to acquire Digital Lifestyle Outfitters (DLO), a popular maker of accessories for devices like the Apple iPod. Financial details of the deal were not disclosed and the deal is expected to close in the second quarter of this year.

DLO, with operations in Charleston, South Carolina and Raleigh/Durham, North Carolina, will be folded into the Peripherals & Accessories business unit of Philips’ Consumer Electronics division. This unit, which Philips says has seen increased sales over the last several years, may well benefit from DLO’s niche of developing accessories, including docking stations, FM transmitters, cables and cases for mobile audio-visual devices such as MP3 and video players. DLO alone last year made around $100 million in sales, mainly in the United States.

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No announcement was made regarding potential layoffs or what the corporate structure will look like post acquisition.

"Besides building on our acquisition of Power Sentry last year and Gemini in 2004, acquiring Digital Lifestyle Outfitters will strengthen Philips’ ability to address emerging trends in this market – such as peripherals and accessories for multi-functional phones – through innovative products that deliver on Philips’ brand promise of sense and simplicity," said Rudy Provoost, Chief Executive Officer of Philips Consumer Electronics, in a statement.

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