Novafora Inc., a Cupertino, Calif.–based maker of video processors, has agreed to acquire Transmeta Corp. for $255.6 million, or between $18.70 and $19 per outstanding share. Novafora has raised VC funding from Gemini Israel Funds and Vertex Venture Capital.
Novafora, Inc., a developer of video processors, today announced that it has entered into a definitive agreement to acquire Transmeta Corporation (NASDAQ:TMTA) for $255.6 million in cash subject to certain adjustments. Transmeta stockholders are expected to receive between $18.70 and $19.00 for each outstanding share of Transmeta’s common stock, subject to working capital and other adjustments.
“Transmeta’s innovative technology and the expertise of its employees are valuable additions to Novafora,” said Zaki Rakib, CEO of Novafora. “Adding Transmeta’s power management technology to our video processor will advance our vision of making our products applicable across the broadest range of video-oriented devices and help Novafora’s mission to fulfill the promise of the digital video revolution – the highest quality video, anywhere, on any device and at any time.”
Since its founding in 1995, Transmeta has been recognized for its innovative computing, microprocessor and semiconductor technologies, and in particular, its line of x86-compatible software-based microprocessors. In recent years the company’s business model has increasingly focused on licensing its technologies and related intellectual property.
Novafora expects to complete its acquisition of Transmeta during the first quarter of 2009 upon approval by Transmeta’s shareholders and subject to other customary closing conditions.
Novafora’s advisors in this transaction are GCA Savvian and the law firms of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, Gross Kleinhendler Hodak Halevy Greenberg & Co. (GKH) and Davis Polk & Wardwell LLP.
Novafora is a video processor company enabling OEMs to deliver on the promise of the digital video revolution – the highest quality video, anywhere, on any display device and at any time. Novafora was founded in 2004 by a group of successful entrepreneurs and video experts and is backed by leading venture capital firms. More information on the company can be found on its website www.novafora.com.