NVIDIA to acquire PORTALPLAYER for ~$357 million
NVIDIA Corporation today announced that it has signed a definitive agreement to acquire San Jose, CA-based PortalPlayer, Inc. (Nasdaq: PLAY), 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 widely recognized for its pioneering technology, including the high-performance system-on-chip (SoC) technology which powers some of the world?s most recognizable portable digital music players.
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.
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