3dfx Buys Stb Systems For $141m

Computergram International, Dec 15, 1998

Graphics chip and software maker 3Dfx Interactive Inc has struck an agreement to acquire STB Systems Inc, which manufactures multimedia accelerators and subsystems, in a stock-swap worth roughly $141m, based on Friday's closing prices. 3Dfx says the deal will enable it to provide PC-OEM and retail customers with a single source for 3Dfx-branded add-in-boards, as well as to allow for a more tightly-integrated chip, software, and board-level layout and design.

It boasts that the purchase makes positions it as one of the top suppliers of graphics technology in the world. Under the terms of the deal, STB shareholders will receive 0.65 shares of 3Dfx common stock for each STB share held. The deal is expected to close in March and, upon completion of the acquisition, STB's operations will remain in Richardson, Texas, although the combined companies' headquarters will be at the 3Dfx site in San Jose. William Ogle, president and chief executive officer of STB, will join the 3Dfx board of directors as vice chairman and executive vice president for 3Dfx. Gordon Campbell will remain chairman of 3Dfx.