By Shelia Watson

CHARLESTON -- Royal Philips Electronics will acquire Charleston-based Digital Lifestyle Outfitters, subject to regulatory approval.

DLO, a privately-held company operating from Charleston, and Raleigh/Durham, N.C., designs, markets and distributes accessories, including docking stations, FM transmitters, cables and cases for mobile audio-visual devices such as MP3 and video players.

The transaction is expected to close in the second quarter of 2007, at which time DLO will become part of the Peripherals & Accessories business unit of Philips’ Consumer Electronics division. No financial details on the transaction were disclosed.

“By teaming up with Philips, DLO will be able to expand outside of the United States, capitalizing on Philips’ global distribution network with key retailers,” said Jeff Grady, DLO’s president and CEO.

DLO reported sales of approximately $100 million in 2006, mainly in the United States, and is expected to make a positive contribution to operating margins in Philips’ Peripherals & Accessories business unit.

The global market for accessories around MP3 players exceeded $4 billion in 2006 and currently is experiencing annual growth of more than 10%.

The deal will make Philips a leading player in peripherals and accessories for the mobility domain. Between 2003 and 2006, sales in Philips’ Peripherals & Accessories business unit more than doubled, due to a combination of targeted acquisitions and growth through development of new products and a strong customer focus.

Peripherals and accessories are among the fastest growing and higher-margin product categories in consumer electronics today, with retailers looking to offer these products as part of a complete consumer electronics portfolio. Within peripherals and accessories, Philips sees the mobility, audio and PC domains as strategic growth areas.

Headquartered in the Netherlands, Royal Philips Electronics employs about 121,700 employees in more than 60 countries worldwide. The company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics.