"The strong synergies in our technologies, markets, and customers, coupled with Microtune's global scale and financial strength, will help accelerate our growth and design wins," added Pete Birch, President and CEO of Auvitek.
Once the acquisition is completed, expected later this month, Birch will become Vice President and General Manager of the newly-formed Microtune Digital Television Business.
Under the terms of the agreement, Microtune will pay approximately $6.8 million in cash and one million shares of Microtune stock, with a current value of approximately $2.2 million, for the Auvitek business.
"With its existing products, Auvitek will provide an additional revenue stream, although its financial contribution will be small today, in the mid single-digit millions per year. We do not expect it to be accretive in the near term, and it is expected to delay breakeven on a consolidated basis until late 2010," said Fontaine.
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