Oak Technology agreed to acquire Xionics Document Technologies Inc., a manufacturer of embedded software for printers and multifunction peripherals, for about $70 million in cash and stock.
Sunnyvale, Calif.-based Oak agreed to pay shareholders of Burlington, Mass.-based Xionics $2.94 in cash plus 0.803 shares of Oak stock for each share of Xionics stock. At Thursday's closing price, the deal totaled $70.2 million. Xionics has about 11.5 million shares outstanding.
The deal is expected to close this fall.
Oak said it will incorporate the Xionics software-which includes operating systems, device drivers, and printer description languages-inside Oak's Pixel Magic chips, which are used to enhance image processing in office equipment, such as digital copiers, printers and fax machines. Xionics customers currently include Canon, Fujitsu, Hewlett-Packard, Kodak, Matsushita, Minolta, and Xerox.