Pixelworks Inc. today said it has agreed to acquire Panstera Inc., a fabless chip company that designs mixed-signal ICs for XGA-resolution LCD desktop monitors. The all-stock deal is valued at more than $120 million.
Panstera was founded in 1999 in San Jose. The firm received some funding from Optoma Inc., an integrator of LCD monitors and projectors, that also uses Pixelworks' ImageProcessor chips.
Allen Alley, Pixelworks chairman and president, said the acquisition will accelerate Pixelworks' penetration of the growing XGA monitor market by offering a full range of needed ICs. Panstera offers a broad line of monitor chips, including DVI (Digital Video Interface) receivers and transmitters, LVDS (low voltage differential signaling) receivers and transmitters, analog-to-digital converters, LCD timing contgrollers, column drivers, and dual-interface LCD monitor display controllers.
Pixelworks, Tualatin, Ore., provides image processors for flat panel monitors. Alley said Pixelworks expects revenue for the fourth quarter, ending Dec. 31, to be 11% to 13% above the $15 million for the previous quarter. Gross profit margin for the fourth quarter of 42% is expected to be unchanged from the previous three-month period.
The acquisition of Panstera is expected to boost revenue in 2001 by more than 90% over this year.