Graphics chip giant, Nvidia, will acquire Taiwanese core logic chipset developer, ULi Electronics, in a cash deal valued at $US52 million.
The deal will bolster Nvidia's ability to get its graphics and other chip technology into computer chipsets, which are taking on a bigger role inside computers.
Chipsets normally act as traffic regulators for the flow of data between a microprocessor and other chips inside a computer, like memory and graphics. But graphics functions have been embedded in chipsets for years, a market Nvidia and rival ATI Technologies Inc. have both worked to gain market share.
The deal will also enable Nvidia to develop closer relationships with customers in Asia, according to the company.
The acquisition was expected to be completed in the first quarter of Nvidia's 2007 fiscal year, and was subject to regulatory approval and other customary closing conditions, Nvidia said. The company's fiscal third quarter 2006 ended October 30, so the deal could close early next year.
ULi's president and chief executive officer, Alex Kuo, would join Nvidia as a senior executive responsible for media and communications processor sales, marketing, and support functions in Asia, Nvidia said.
Nvidia will continue to supply ULi customers with existing products for the foreseeable future.