SAN JOSE -- In a bankruptcy auction, Genesis Microchip Inc. today said it has won a bid to purchase the assets of VM Labs Inc., a Mountain View, Calif.-based fabless semiconductor company focused on the DVD market.
Genesis Microchip said it will acquire all patents, trademarks, and intellectual property of VM Labs for $13.6 million in cash. The purchase is expected to close within 30 days.
"With the combination of VM Labs MPEG decoder technology and Genesis portfolio of consumer electronics display technologies, we believe that we would be well-positioned to effectively compete in the high growth DVD market," said Amnon Fisher, president and chief executive officer of the San Jose-based company.
VM Labs filed for Chapter 11 bankruptcy protection during December. The company's Nuon product line of semiconductors and software have been used in DVD players and networked set-top boxes sold by Toshiba, Samsung, and Motorola, said Genesis. VM Labs' technology is based on a 128-bit multimedia processor, which Genesis said was highly programmable and designed to address the proliferation of new features.
"Through this acquisition Genesis expects to expand its product offering in the consumer electronics market," Fisher said. "We believe the combination of VM Labs's DVD decoding solutions with our Faroudja DCDi progressive scan technology provides the building blocks for the next generation of integrated system on a chip solutions."