HTC acquires chipset specialist S3 Graphics in $300 million deal

In a deal worth $300 million, HTC has taken control of graphic chipset specialist S3 Graphics after acquiring VIA Technologies' share of the company.

The agreement sees the Taiwanese firm purchasing all outstanding shares in S3 from VIA for $147 million, while private investor WTI a company in which VIA chairman and HTC co-founder Cher Wang holds a significant share will also receive $153 million as part of the deal.

The graphics game

S3 Graphics' business spans PC, console and mobile, but it's the firm's collection of IP and expertise that may well prove most valuable to HTC as the company is incorporated into its operations.

Former owner VIA acquired S3 in 2011 with the intention of using the company's know how to accelerate the integration of graphics capabilities with its processor and chipset products.

As part of the sale, VIA will also benefit from a capital gain of $37 million and paid-in-capital of $115 million.

[source: BusinessWire]