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Nvidia signs deal to acquire PortalPlayer

Posted: 08 Nov 2006     Print Version  Bookmark and Share

Keywords:Nvidia  PortalPlayer  acquisition  graphics processor  processor 

Graphics chips supplier Nvidia Corp. has signed a deal to acquire PortalPlayer Inc. for Rs.1,649.70 crore ($357 million) in a cash deal.

PortalPlayer was able to perform an IPO on the strength of its Apple iPod design win but suffered subsequent setbacks. Nonetheless Nvidia has agreed to pay Rs.623.84 ($13.50) in cash for each outstanding share of PortalPlayer common stock, which represents a total purchase price of approximately Rs.1,649.70 crore ($357 million), or approximately Rs.743.98 crore ($161 million) net of cash on its balance sheet as of Sept. 30, 2006.

The purchase price represents approximately a 19 per cent premium to the 20-day average closing price of PortalPlayer through Friday, Nov. 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.

"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," said Jen-Hsun Huang, president and CEO of Nvidia, in a statement. "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 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," said Richard Sanquini, chairman of the PortalPlayer board of directors.

- Peter Clarke
EE Times Europe

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