Nvidia Buys ULi
NVIDIA Corporation, the worldwide leader in programmable graphics processor
technologies, today announced that it has signed a definitive agreement to
acquire ULi Electronics Inc. (ULi), one of the PC industry’s most
highly-regarded core logic developers. Headquartered in Taipei, ULi also has
offices in Hsinchu; Shanghai; Shenzhen; and San Jose, California.
ULi is recognized for its innovative core logic technology as well as other
multimedia and embedded products. The acquisition represents NVIDIA’s ongoing
investment in its platform solution strategy, which leverages the acclaimed
NVIDIA nForce media and communications processors (MCPs) and NVIDIA GeForce
and NVIDIA Quadro graphics processing units (GPUs). Additionally, the
acquisition is expected to strengthen the Company’s sales, marketing, and
customer engineering presence in Taiwan and China.
Under the terms of the agreement, NVIDIA will pay 19 New Taiwan Dollars in
cash for each outstanding ULi share and stock option, for a total of
approximately $52 million (USD). The acquisition, which is expected to be
completed in the first quarter of the Company’s fiscal year 2007, remains
subject to the satisfaction of regulatory requirements and other customary
Alex Kuo, president and chief executive officer, ULi, will join NVIDIA as a
senior executive responsible for MCP sales, marketing, and support functions in
Asia. NVIDIA intends to supply ULi customers with current products for the
Jen-Hsun Huang, president and chief executive officer, NVIDIA, stated: "Alex
and his team have built a company admired for creating innovative products in
the core logic arena. The acquisition provides an opportunity for NVIDIA to
leverage a very talented engineering team in order to expand our MCP initiatives
while building closer relationships with customers in Asia."
"At ULi, we have always believed that the opportunities in the MCP space are
tremendous," added Mr. Kuo. "The strength of the NVIDIA world-class engineering
and marketing organizations will enable the ULi team to take product design and
development to the next level."
NVIDIA is the largest AMD core logic supplier in the
world (Source: Mercury Research, Third Quarter 2005 PC CPU Report). NVIDIA
nForce MCP revenue has increased 100 percent year-over-year and has achieved
record revenue for five consecutive quarters.