NVIDIA to Acquire ULi Electronics, a Leading Developer of Core Logic Technology

I must say that this came as a shock to me.  We just posted an  on ULi's new M1697 AMD chipset last week and just yesterday we published a  at the new chipset.  Offering excellent performance and integrated 7.1 HD audio, we deemed the chipset to be a real winner and some serious competition for NVIDIA and ATi in the mainstream market.  Here's a quote from our own Wesley Fink:

How does the ULi M1697 compare to the excellent performance of the NVIDIA nForce4 and the ATI RD480? Since the real competition is the now mainstream NVIDIA nF4 SLI/Ultra and the ATI Rx480 Grouper/Crossfire, we would have to conclude that the ULi 1697 competes very well indeed. The M1697 gives up nothing in performance to the NVIDIA or ATI chipsets.

Well, it looks as though NVIDIA liked what it saw as well and they have :

NVIDIA Corporation (Nasdaq: NVDA), the worldwide leader in programmable graphics processor technologies, today announced that it has signed a definitive agreement to acquire ULi Electronics Inc. (ULi), one of the PC industry's most highly-regarded core logic developers.  Headquartered in Taipei, ULi also has offices in Hsinchu; Shanghai; Shenzhen; and San Jose, California.

ULi is recognized for its innovative core logic technology as well as other multimedia and embedded products. The acquisition represents NVIDIA's ongoing investment in its platform solution strategy, which leverages the acclaimed NVIDIA nForce® media and communications processors (MCPs) and NVIDIA® GeForce® and NVIDIA Quadro® graphics processing units (GPUs).  Additionally, the acquisition is expected to strengthen the Company's sales, marketing, and customer engineering presence in Taiwan and China.

Under the terms of the agreement, NVIDIA will pay 19 New Taiwan Dollars in cash for each outstanding ULi share and stock option, for a total of approximately $52 million (USD). The acquisition, which is expected to be completed in the first quarter of the Company's fiscal year 2007, remains subject to the satisfaction of regulatory requirements and other customary closing conditions.

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