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3dfx set to buy GigaPixel
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March 27, 2000: 7:09 p.m. ET
CEO says $186 million stock deal will enable 3dfx to become a key player
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NEW YORK (CNNfn) - 3dfx Interactive Inc., developer and marketer of 3D technology for personal computers, announced Monday that it was set to acquire privately-held GigaPixel Corp. for about $186 million in a stock deal.
The San Jose, Calif.-based company, which makes graphics accelerator chips, boards and software, said it would acquire all outstanding shares and options of Santa Clara, Calif.-based GigaPixel, to be paid with about 15.6 million 3dfx common shares and options.
Shares of 3DFX gained 1-1/2 to 13-7/16 at the close of Monday trading on the Nasdaq.
Alex Leupp, president and CEO of 3dfx Interactive, said the deal was aimed at enabling the company to position itself as a leader in providing advanced 3D technology for consumer electronic devices.
"The deal will benefit us in three ways," said Scott Sellers, founder and chief technology officer of 3dfx Interactive. "First, we get access to GigaPixel's very broad and specialized intellectual property and design expertise relating to 3D rendering. We can expand our target market and continue to be a dominant player in the PC and Mac markets. And we also get access to a team of over 40 engineers skilled in 3D design, in a tight labor market."
GigaPixel, specializes in the design, development and licensing of 3D core technology for game consoles, set top boxes, Intel and non-Intel based personal computers.
Dave Zacarias, CFO at 3dfx, said the transaction is expected to close in the third quarter of 3dfx's fiscal year 2001, subject to customary regulatory approvals and approval by shareholders of both companies. Furthermore, George Haber, president and CEO of GigaPixel, will join the 3dfx (TDFX: Research, Estimates) board of directors. 
-from staff and wire reports
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3dfx
GigaPixel Corp.
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