Oak to Acquire TeraLogic

Oak Technology, a developer of video/audio processing equipment for digital home entertainment, will acquire DTV chipmaker TeraLogic for $38 million in cash, payable to TeraLogic stockholders. Under the agreement, TeraLogic will become a subsidiary of Oak, which will assume TeraLogic's $12 million worth of debts and obligations.

Oak, which expects the transaction to be completed by the end of 2002, says the acquisition will greatly expand its market presence in HDTV consumer products. Teralogic currently supplies its multiformat video decoder platform to Sony, Mitsubishi, Samsung, Thomson/RCA, ReplayTV and Toshiba.