Nvidia to buy iPod chipmaker for $357 million
Graphics chipmaker Nvidia said on Monday that it agreed to buy PortalPlayer, a maker of computer chips used in portable digital media players, for about $357 million in cash.
Nvidia plans to pay $13.50 for each share of PortalPlayer, a 1 percent premium to the company’s closing price of $13.36 on Friday. The deal has a value of about $161 million net of cash on the balance sheet for PortalPlayer, which makes the chip inside many of Apple Computer’s iPod media players.
The acquisition will help Nvidia expand its line of computer chips used in handheld devices such as portable digital media players and phones capable of playing music and videos.