Microtune will acquire Auvitek International, Ltd. for approximately $9 million in cash and stock and with a potential earn-out if certain performance targets are met, all subject to various standard closing conditions. Under the terms of the agreement, Microtune will pay approximately $6.8 million in cash and one million shares of Microtune stock, with a current value of approximately $2.2 million, for the Auvitek business. The acquisition is expected to close during the month of July.
Microtune is the inventor of the single-chip TV tuner and is a supplier of radio frequency (RF) silicon and systems solutions for the cable TV, digital TV (DTV), and automotive entertainment markets. Auvitek is a supplier of advanced DTV demodulator integrated circuits (ICs) for the HDTV and TV-enabled peripherals markets with primary engineering operations based in Shanghai, China.