(FORTUNE Small Business) – Swiss Company Micronas Semiconductor Holding announced that it will acquire Chicago-based Linx Electronics, a provider of digital television technology, for $26 million in cash and stock. Privately held Linx, which has 20 employees, found a fix for a major digital-TV headache: screens that go blank when reception is poor. Its chip, when installed into TV sets, ensures continuous picture quality. Founders Wayne Li, 40, Jingsong Xia, 35, and Shawn Yang, 40 (pictured at left), will stay with the company and receive 80% of the deal's proceeds, with the remainder paid to an investor, Liberty Corp. Linx's chip should go into mass production later this year. --D.C.