May 5, 2003 – Santa Clara, CA – Zoran Corp. has agreed to acquire fellow chipmaker Oak Technology Inc. in a cash-and-stock deal valued at about $358 million. The proposed acquisition will combine Zoran, a maker of chips for DVDs and digital cameras, and Oak Technology, Sunnyvale, CA, which makes chips for HDTV and digital imaging.
Under the agreement, Zoran said it would pay 0.2323 share plus $1.78 in cash for each share of Oak Technology. Based on Zoran’s Friday’s closing of $17.64, the acquisition is valued at $5.88 a share. The cash-and-stock deal includes $100 million in cash, reported Dow Jones.
The transaction, expected to close in 3Q03 and is subject to regulatory and shareholder approval. The boards of both companies already have approved the deal.
Zoran said it expects the acquisition to add to its earnings, before amortization and goodwill, in 1H04.
Zoran President and CEO Levy Gerzberg will continue as president and CEO following completion of the acquisition. Zoran’s board will increase to nine directors and will include three members of the current Oak Technology board.