DUBLIN, Ireland -- Parthus Technologies plc here today announced an agreement to acquire privately-held Chicory Systems Inc., an Austin, Tex.-based supplier of semiconductor technology for mobile Internet applications.
Under a purchase agreement, Parthus is exchanging 22.6 million ordinary shares of stock and $11.7 million in cash for full ownership of 18-month-old Chicory. The initial transaction is valued at $41.4 million, based on Monday's closing stock prices.
An additional 20.6 million shares of stock will also be paid by Parthus based on performance targets for Chicory, which will become the Acceleration Business Unit of the Irish company. The total value of the purchase could be nearly $80 million, based on the additional payments.
In a related move today, Parthus also introduced MachStream, an intellectual property-based application for acceleration of mobile Internet systems based on technology from Chicory Systems. The MachStream platform acts as an acceleration engine for a variety of wireless operating systems and software standards, such as Symbian's EPOC and applications based on Microsoft's Stinger environment.
"The addition of Chicory with its highly-advanced acceleration technology perfectly complements our portfolio of platform-level IP," said Brian Long, chief executive officer of Parthus.
Chicory was founded by John Derrick, a former computer architect at IBM Corp. The Austin startup said it has 26 employees, including microprocessor design engineers and algorithm development experts. It will remain based in Austin as the Acceleration Business Unit of Parthus.