Date: 15/09/2010

Zoran agree to acquire Microtune

Zoran has entered into a definitive agreement to acquire Microtune. As a part of the agreement Zoran will pay $2.92 in cash for each share of Microtune's common stock, resulting in a transaction price of approximately $166 million, or $84 million net of cash acquired.
Zoran gains Microtune's silicon tuner product line to offer to its cable set-top-box customers along with its semiconductor chips for this market to enable small form factor designs.

Zoran says combining the demodulator technologies of both companies, Zoran can provide fully integrated receivers as multiple new standards for demodulation emerge in various worldwide geographies.

"This strategic acquisition will enhance our position in the core markets we serve and expand our worldwide presence, improving Zoran's ability to serve our customers," said Dr. Levy Gerzberg, president and chief executive officer of Zoran. "Further, it underscores our key objectives to increase shareholder value and maximize the value of our assets and we are looking forward to welcoming Microtune's employees to Zoran."

"We are excited with the opportunity to join forces with the Microtune team to deliver cutting-edge integrated systems for the fast growing and dynamic STB and DTV markets," said Ram Ofir, senior vice president and general manager of Zoran's Home Entertainment Division. "Combining the RF receiver and SoC technologies is designed to provide our customers with a unique value proposition, reducing cost and accelerating time-to-market."

"Microtune has actively explored a broad range of strategic alternatives during the last several months to enhance shareholder value. The Board of Directors concluded that the Zoran acquisition is the best solution to deliver value to our shareholders," said James A. Fontaine, president and chief executive officer of Microtune. "We believe there is a great strategic fit between our businesses and Zoran and this transaction will also benefit our customers and employees."