News Article
Zoran to acquire Israeli demodulator IC firm
Digital signal processing chip firm Zoran Corporation has signed a definitive agreement to acquire Oren Semiconductor, an Israel-based fabless developer of demodulator ICs for high definition televisions.
Digital signal processing chip firm Zoran Corporation has signed a definitive agreement to acquire Oren Semiconductor, an Israel-based fabless developer of demodulator ICs for high definition televisions.
Under the terms of the deal, California-based Zoran will acquire the remainder of Oren's outstanding stock for US$44.6 million in cash and stock. The company currently owns a 17% share of Oren.
The transaction is subject to applicable regulatory approvals and other customary closing conditions and is expected to be completed during the current quarter.
Zoran said the transaction would be accretive to the its earnings no later than the first quarter of 2006. The company also said that the transaction would not have a "material impact" on its recent guidance for the second quarter of 2005.
The acquisition of Oren strengthens Zorans product portfolio in the digital TV market.
"We have worked with Oren for over a year to integrate its products into our platform and deliver a series of improved solutions for the growing digital television markets," said Zoran president and CEO Dr Levy Gerzberg.
"Together we have designed new reference designs that combine Oren's cascade demodulator ICs with Zoran's Generation 9 and SupraHD multimedia processors.
"These platforms deliver a wide range of optimised solutions for our OEM customers and have already enabled us to secure multiple design wins for products that we expect to see in the market later this year."
Oren president and CEO Avraham Menachem said the technology being developed by the two companies could help "accelerate" the transition from analogue to digital television use.
"We expect US shipments of integrated television sets to increase from 7.1 million in 2005 to 27 million in 2007 and worldwide shipments to increase from 18.7 million in 2005 to 56.4 million in 2007."
Under the terms of the deal, California-based Zoran will acquire the remainder of Oren's outstanding stock for US$44.6 million in cash and stock. The company currently owns a 17% share of Oren.
The transaction is subject to applicable regulatory approvals and other customary closing conditions and is expected to be completed during the current quarter.
Zoran said the transaction would be accretive to the its earnings no later than the first quarter of 2006. The company also said that the transaction would not have a "material impact" on its recent guidance for the second quarter of 2005.
The acquisition of Oren strengthens Zorans product portfolio in the digital TV market.
"We have worked with Oren for over a year to integrate its products into our platform and deliver a series of improved solutions for the growing digital television markets," said Zoran president and CEO Dr Levy Gerzberg.
"Together we have designed new reference designs that combine Oren's cascade demodulator ICs with Zoran's Generation 9 and SupraHD multimedia processors.
"These platforms deliver a wide range of optimised solutions for our OEM customers and have already enabled us to secure multiple design wins for products that we expect to see in the market later this year."
Oren president and CEO Avraham Menachem said the technology being developed by the two companies could help "accelerate" the transition from analogue to digital television use.
"We expect US shipments of integrated television sets to increase from 7.1 million in 2005 to 27 million in 2007 and worldwide shipments to increase from 18.7 million in 2005 to 56.4 million in 2007."
