Sage to buy Faroudja for $155 million in stock
February 22, 2000 12:34 AM
SAN JOSE, Calif, Feb 22 (Reuters) - Sage Inc. SAGI , which supplies digital display processors on Tuesday said it agreed to buy Faroudja Inc FDJA , maker of video processing technologies in a stock swap worth about $155 million.
Under the agreement, each share of Sunnyvale, Calif.-based Faroudja will be exchanged for .285 shares of Sage common stock, or about 3.9 million shares.
Sage's Friday closing price of 39-5/8, put the value of the deal at $155 million, the company said. Shares of Faroudja on Friday closed at 8-11/16.
The merger is expected to be tax-free to Faroudja stockholders. Both company boards have approved the deal, which is expected to close in the quarter ending June 30.
The transaction, which will be accounted for as a purchase, is expected to become accretive to Sage's cash earnings per share during calendar 2001.
"Together, we will provide the premier solutions for today's display devices and be well positioned to provide a best-of-class imaging solution for a new generation of displays for PCs, TVs, and digital appliances," Chandra Reddy, Sage's chief executive officers, said in a statement.
"The combined business will be significantly stronger in terms of technology, marketing, distribution and financial perspectives with a total market opportunity of hundreds of millions of units annually."
((New York Newsdesk, 212-859-1700)) REUTERS
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