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NVIDIA to Buy PortalPlayer for $357 MillionPOSTED November 7, 2006 SANTA CLARA -- NVIDIA Corporation, a developer of programmable graphics technologies, announced that it has signed an agreement to acquire San Jose, CA-based PortalPlayer, Inc., a leading supplier of semiconductors, firmware, and software for personal media players (PMPs) and secondary display-enabled computers. PortalPlayer, which was founded in 1999, is best known for making chips for Apple's popular iPod devices. Under terms of the agreement, NVIDIA will pay $13.50 in cash for each outstanding share of PortalPlayer common stock, which represents a total purchase price of approximately $357 million, or approximately $161 million net of cash on PortalPlayer's balance sheet as of September 30, 2006. The purchase price represents approximately a 19 percent premium to the 20-day average closing price of PortalPlayer through Friday, November 3, 2006. This acquisition has been approved by the Board of Directors of each company and is subject to regulatory approvals and other customary closing conditions. "Modern mobile devices are miniaturized yet powerful multimedia computers. At the core of their architectures are complex Application Processors integrating microprocessors, system logic, networking, and multimedia processors," said Jen-Hsun Huang, president and CEO of NVIDIA. "With this acquisition, we are combining the two essential technologies of next-generation PMPs, PDAs, portable game players, and phones: PortalPlayer's innovative Application Processor technology and NVIDIA's industry-leading GPU technology. With the products created through this combination, we intend to drive the next digital revolution, where the mobile device becomes our most personal computer." "We are excited about the next chapter in our corporate
history," added Richard Sanquini, chairman of the
PortalPlayer Board of Directors. "We believe the deal is
a win-win for our employees and shareholders. We have spent the
past several months extensively exploring our strategic options.
We feel the advantages offered by the NVIDIA acquisition are
the most compelling, and that our customers and employees will
benefit from NVIDIA's strong position in handheld GPU technologies
and its vast resources and global reach." © Copyright SVDaily.com |
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