Wednesday, July 6, 2011
HTC Corp plan to purchase graphics chip vendor S3 Graphics Co. Ltd. for $300 million from microprocessor vendor VIA Technologies Inc.
Under terms of the agreement, HTC will pay VIA $147 million and pay WTI $153 million to acquire all outstanding shares of S3, a Fremont, Calif.-based supplier of graphics chips for notebook and desktop PCs, embedded and other products.
VIA acquired S3 in 2001 to accelerate the integration of graphics capabilities with its processor and chipset products. In 2005, WTI invested in S3 to help fund the operations and R&D initiatives. Cher Wang, chairman of VIA's board of directors, is a significant shareholder in WTI.
"The transaction would allow VIA to monetize a portion of its rich IP portfolio, yet retain its graphics capabilities to support the development and sale of its processors and chipsets," said Tzu-mu Lin, a VIA senior vice president and member of the company's board directors, in a statement.
The boards of VIA, WTI and HTC have already approved the deal, VIA said. The transaction remains subject to regulatory approvals and other closing conditions and is expected to close before the end of the year, VIA said.
VIA said it would recognize a capital gain of $37 million and paid-in-capital of $115 million from this transaction.
By: DocMemory
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