SANTA CLARA, Calif. -- Zoran Corp. here today announced that it has agreed to acquire Nogatech Inc., a supplier of IC-compression chips for digital video applications, for about $170 million in stock.
The move expands Zoran's own efforts in the digital/video-chip business, according to officials from the Santa Clara-based supplier of multimedia ICs.
"This merger brings together the considerable expertise of two companies focused on delivering high-quality digital video streaming technology for the growing digital multimedia and mobile and Internet appliance markets," said Levy Gerzberg, president and chief executive Zoran.
"We believe cross-leveraging the technologies of Nogatech and Zoran can provide more complete product solutions for both product lines and a quicker time to market. Zoran's expertise in digital camera technologies can immediately add value to Nogatech products currently being developed to address that market," Gerzberg said.
"Zoran can benefit from the connectivity expertise developed by Nogatech and use it in products being designed for future mobile appliances. Combining our technologies will also allow us to pass along to our original equipment customers the benefits and cost savings inherent in integrating state-of-the-art technologies for the converging digital television, PC, digital camera, mobile, and Internet appliance markets," he added.
Under the terms of the agreement, Nogatech of Santa Clara will become a subsidiary of Zoran. Arie Heiman, Nogatech's president and chief executive, will become a senior vice president at Zoran.
Nogatech will receive 0.166 of a share of Zoran common stock for each outstanding share of Nogatech. The transaction is expected to be completed in the fourth quarter of 2000.