National Semiconductor Corp. announced today it has agreed to acquire a manufacturer of MPEG audio/video decoders in a deal worth almost $100 million.
Company officials said the acquisition of Mediamatics Inc., of Fremont, Calif., will help National Semiconductor enter the field of digital videodisk players and set-top boxes.
Under the terms of the deal, National will acquire 100 percent of Mediamatics' stock in exchange for 3.4 million shares of its own stock, which closed at $29.37 per share Friday. The deal has been approved by National's board of directors and is expected to be completed this month.
"Mediamatics provides us with three key components of our system-on-a-chip strategy: world-class MPEG expertise in balanced hardware/software, systems know-how and its home connectivity building-block intellectual property," said National CEO Brian Halla in a statement.
Mediamatics will operate as a wholly owned subsidiary of National Semiconductor, and Mediamatics President Prem Nath will serve as president of the new subsidiary.
National Semiconductor is based in Santa Clara, Calif.