NVIDIA today announced that it has signed a definitive agreement to
acquire San Jose, CA-based PortalPlayer, a leading
supplier of semiconductors, firmware, and software for personal media
players (PMPs) and secondary display-enabled computers. PortalPlayer, which
was founded in 1999, is widely recognized for its pioneering technology,
including the high-performance system-on-chip (SoC) technology which powers
some of the world's most recognizable portable digital music players.
Under terms of the agreement, NVIDIA will pay $13.50 in cash for each
outstanding share of PortalPlayer common stock, which represents a total
purchase price of approximately $357 million, or approximately $161 million
net of cash on PortalPlayer's balance sheet as of September 30, 2006. The
purchase price represents approximately a 19 percent premium to the 20-day
average closing price of PortalPlayer through Friday, November 3, 2006.
This acquisition has been approved by the Board of Directors of each
company and is subject to regulatory approvals and other customary closing
"Modern mobile devices are miniaturized yet powerful multimedia
computers. At the core of their architectures are complex Application
Processors integrating microprocessors, system logic, networking, and
multimedia processors," said Jen-Hsun Huang, president and CEO of NVIDIA.
"With this acquisition, we are combining the two essential technologies of
next-generation PMPs, PDAs, portable game players, and phones:
PortalPlayer's innovative Application Processor technology and NVIDIA's
industry-leading GPU technology. With the products created through this
combination, we intend to drive the next digital revolution, where the
mobile device becomes our most personal computer."
"We are excited about the next chapter in our corporate history," added
Richard Sanquini, chairman of the PortalPlayer Board of Directors. "We
believe the deal is a win-win for our employees and shareholders. We have
spent the past several months extensively exploring our strategic options.
We feel the advantages offered by the NVIDIA acquisition are the most
compelling, and that our customers and employees will benefit from NVIDIA's
strong position in handheld GPU technologies and its vast resources and
The acquisition of PortalPlayer is expected to accelerate NVIDIA's
ongoing investment in its handheld product strategy. Today, NVIDIA's
handheld technology, which combines high-quality graphics, TV, and video
with low power and a small footprint, is at the foundation of many
industry-leading portable media devices, including phones from Motorola,
Samsung, Kyocera, HTC, and Sony Ericsson.