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Microtune to buy DTV demodulator IC supplier

Posted: 15 Jul 2009 ?? ?Print Version ?Bookmark and Share

Keywords:DTV? demodulator? digital TV?

Microtune Inc. has signed a definitive agreement to acquire China-based DTV demodulator IC supplier Auvitek International Ltd for approximately $9 million in cash and stock.

The addition of Auvitek's complementary digital components will transform Microtune from a pure-play tuner supplier to a developer of highly integrated RF-to-bits solutions.

"The acquisition of Auvitek's team and technology will not only enable us to target a larger opportunity in the worldwide integrated DTV market, but also will allow us to better serve customers with more complete solutions," said James A. Fontaine, president and CEO of Microtune. "It enriches our portfolio of products; it substantially builds our IP and employee talent base; and it adds resources, alliances and relationships that will help accelerate penetration into the China digital TV market."

"Auvitek has been committed to engineering best-in-class demodulation and channel decoding technology, and we are excited about becoming a part of Microtune," said Pete Birch, President and CEO of Auvitek. "The strong synergies in our technologies, markets, and customers, coupled with Microtune's global scale and financial strength, will help accelerate our growth and design wins. We join a company that shares our commitment to customers in providing high-performance electronics that ensure a quality TV viewing experience for consumers."

Upon the close of the acquisition, Auvitek will be wholly-owned by Microtune. Birch will become VP and general manager of the newly-formed Microtune Digital Television Business, reporting to executive VP Barry F. Koch.

Under the terms of the agreement, Microtune will pay approximately $6.8 million in cash and one million shares of Microtune stock, with a current value of approximately $2.2 million, for the Auvitek business.

"We see it as an important, future growth engine for the company, one that will ensure our health and competitive strength in the future as we gain traction initially in the China TV market," Fontaine added. "Together, Microtune and Auvitek will continue to raise the bar of innovation in the industry and continue to deliver best-in-class products and solutions to our customers. We are very pleased to welcome the Auvitek team and are excited to work together to create new opportunities for growth."

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