IT Mergers & Acquisitions

NVIDIA Corporation today announced that it has signed a definitive agreement to acquire San Jose, CA-based PortalPlayer, Inc., a leading supplier of semiconductors, firmware, and software for personal media players (PMPs) and secondary display-enabled computers.

Under terms of the agreement, NVIDIA will pay $13.50 in cash for each outstanding share of PortalPlayer common stock, which represents a total purchase price of approximately $357 million, or approximately $161 million net of cash on PortalPlayer’s balance sheet as of September 30, 2006. The purchase price represents approximately a 19% premium to the 20-day average closing price of PortalPlayer through Friday, November 3, 2006. This acquisition has been approved by the Board of Directors of each company and is subject to regulatory approvals and other customary closing conditions.

Jen-Hsun Huang, president and CEO of NVIDIA, comments, “With this acquisition, we are combining the two essential technologies of next-generation PMPs, PDAs, portable game players, and phones: PortalPlayer’s innovative Application Processor technology and NVIDIA’s industry-leading GPU technology. With the products created through this combination, we intend to drive the next digital revolution, where the mobile device becomes our most personal computer.”