Israel’s Zoran Corporation, a provider of digital chip solutions, has agreed to purchase US-based Oak Technology. The transaction is expected to be completed in the third quarter of 2003 and is subject to approval by the stockholders of both companies as well as regulatory approval.
Under the terms of the contract, unanimously approved by the respective Boards of Directors, each outstanding share of Oak's common stock will be exchanged for 0.23 of a share of Zoran common stock and cash in an amount equal to $1.78.
Outstanding options to purchase Oak stock will be assumed by Zoran. Total cash and stock consideration represents $5.88 per share. The total merger consideration is valued at $358 million including $100 million in cash. Following the transaction, Zoran and Oak stockholders will own approximately 66.6 percent and 33.4 percent, respectively, of the combined company on a fully diluted basis.
Zoran expects the transaction to be accretive to the company's earnings before amortization and goodwill in the first half of 2004. The management teams of Zoran and Oak will be combined to address the expanded opportunities created by the merger. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
