VIA Technologies, a Taiwan-based developer of x86 processor platforms, this morningannounced that it has sold all of its shares in S3 Graphics, a provider of graphics visualization technologies used in PCs, game consoles and mobile devices.
The buyer is smartphone manufacturerHTC, which is acquiring all outstanding shares of S3 Graphics for a grand total of $300 million.
VIA Technologies acquired S3 Graphics in 2001 with the intention to accelerate integration of graphics capabilities with its processor and chipset products. S3 Graphics became undercapitalized in 2005, prompting VIA to add WTI Investment International as a new investor to help fund the operations and R&D initiatives.
Notably, WTI is a private investment company, in which VIA chairman Cher Wang is a significant shareholder.
VIA will receive $147 million, while WTI will receive $153 million. VIA will recognize a capital gain of $37 million and paid-in-capital of $115 million in this transaction.
“The transaction would allow VIA to monetize a portion of its rich IP portfolio, yet retain its graphics capabilities to support the development and sale of its processors and chipsets,” said Tzu-mu Lin, Senior Vice President and Board Director of VIA.
The transaction is subject to regulatory approvals and other customary conditions but is expected to close before end of 2011.
The buyer is smartphone manufacturerHTC, which is acquiring all outstanding shares of S3 Graphics for a grand total of $300 million.
VIA Technologies acquired S3 Graphics in 2001 with the intention to accelerate integration of graphics capabilities with its processor and chipset products. S3 Graphics became undercapitalized in 2005, prompting VIA to add WTI Investment International as a new investor to help fund the operations and R&D initiatives.
VIA will receive $147 million, while WTI will receive $153 million. VIA will recognize a capital gain of $37 million and paid-in-capital of $115 million in this transaction.
“The transaction would allow VIA to monetize a portion of its rich IP portfolio, yet retain its graphics capabilities to support the development and sale of its processors and chipsets,” said Tzu-mu Lin, Senior Vice President and Board Director of VIA.
The transaction is subject to regulatory approvals and other customary conditions but is expected to close before end of 2011.
