BOCA RATON, Fla.--As part of its emphasis on Internet appliances, National Semiconductor Corp. today announced plans to invest $5.0 million in Boca Research Inc. here, which is working with National and Royal Philips Electronics to develop television capability for American OnLine Inc. (AOL).
Under the agreement, National will purchase up 691,085 newly issued shared of Boca Research, or about 6% of its outstanding common stock, at a cash price of $7.235 each. The investment is expected to completed by October.
In addition to the investment, the two companies said they have agreed to increase cooperation in development and they have inked a new licensing agreement.
"Their investment in our company will provide added capital to enable us to continue to execute our new strategy, which is focused on supplying information appliances and thin client/server computing devices to these growing markets," said Anthony F. Zalenski, president and CEO of Boca Research. "This further strengthens the National Semiconductor/Boca Research/Philips relationship which was created to provide solutions, such as the forthcoming AOL TVSM capability, to the consumer Internet user."
In May, AOL announced it would use National's Geode GXm microprocessor is the first-generation of set-top boxes for AOL TV. These set-top boxes are based on a hardware reference design from Boca Research (see May 11 story).
"Our information appliance thrust and our Geode family of products are enabling Boca Research to bring consumers new types of information access devices beyond the traditional desktop PC," said Brian Halla, chairman, CEO and president of National, based in Santa Clara, Calif. "The Geode with its x86 architecture, low power consumption and high level of integration allows Boca Research to create exciting products that deliver fully compatible interactive services."