Senin, 13 September 2010

Digital entertainment chip co Zoran buys US co

Zoran Corp. (Nasdaq: ZRAN) is buying home entertainment integrated circuit firm Microtune, Inc. (NASDAQ: TUNE). Zoran will pay $2.92 in cash for each share of Microtune's common stock, resulting in a transaction price of approximately $166 million, or $84 million net of cash acquired.
Zoran expects the acquisition to be accretive immediately following the close of the deal, which is expected to be in the fourth quarter of 2010.
Microtune develops and deploys silicon tuners for the cable set-top-box ("STB"), broadband cable modem, DTV, and automotive entertainment markets. Zoran believes Microtune's product portfolio is complementary and synergistic to Zoran's strategic objectives.
Zoran is increasing its focus on the STB market as part of its strategy to become a complete provider of solutions for consumer home entertainment. Microtune's silicon tuners combined with Zoran's solutions are expected to provide customers a more complete solution from a single supplier. The acquisition will also strengthen Zoran's position in DTV as the market transitions from traditional can tuners to single-chip TV tuners during the next several years. Adoption of silicon tuners is expected to enable TV manufacturers to meet the growing demand for high-performance, smaller form factor and more cost-effective solutions.
Microtune shares closed on Friday at $2.92, the price of the offer. Zoran closed on Friday at $7.19. Wednesday and Thursday were marked by sharply higher turnover in Zoran shares, as the deal was first announced on Wednesday.
Published by Globes [online], Israel business news - www.globes-online.com

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