Nvidia, a maker of graphics chips, on Monday said that it would buy PortalPlayer, which produces computer chips for use within portable devices, in a stock deal worth roughly $357 million, Reuters reports.
The acquisition is meant to increase Nvidia’s line of chips for use with portable devices like MP3 players, phones and other handhelds, according to Reuters.
Nvidia expects to pay out approximately $13.50 per PortalPlayer share, or a premium of 1 percent on the firm’s Friday closing price of $13.36 a share, Reuters reports. In early-morning Nasdaq trading Monday, PortalPlayer shares were still valued at $13.36, while Nvidia shares traded at $32.70, up $0.10 from its Friday closing value of $32.60, according to Reuters.
Noteworthy Nvidia customers include such handset producers as Motorola, Kyocera and Sony Ericsson, Reuters reports.
The deal has already received approval from both the Nvidia and PortalPlayer boards of directors, according to Reuters.
Jen-Hsun Huang, Nvidia chief executive, said in a release, “With the products created through this combination, we intend to drive the next digital revolution, where the mobile device becomes our most-personal computer,” Reuters reports.
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