Dutch electronics group Philips is selling its audio-visual equipment business to the maker of Gibson guitars for $135m, the Financieele Dagblad says on Monday.

The audio-visual equipment business employs some 1,900 people and makes home audio systems, headphones, speakers and media players.

The video arm will remain with Philips until 2017 because of licence agreements, the FD says.

Philips has gradually been pulling out of consumer electronics, and its television arm is now in Chinese hands.