Gennum has increased the price it will pay for fellow Canadian chip company Tundra Semiconductor by 31% to Canadian $112m.
This changes the terms of a previously announced acquisition agreement entered into last month.
This means that Gennum will pay Cdn.$5.81 in cash or 1.1679 common Gennum shares for each Tundra share.
In the original deal this was Cdn.$4.43 in cash or 1.1575 Gennum shares for each Tundra share.
Gennum specialises in chipset aimed at the video broadcast market and the acquisition of Tundra will allow it to address the computing, storage and telecoms markets.
Tundra develops bridges and switches using RapidIO, VME, SDI and HDMI standards, as well as in PCI Express.
“Tundra’s strong position with leading communications systems OEMs, particularly in the telecommunications market will result in increased opportunities for the combined company to grow its business,” said Dr. Franz Fink, President and CEO of Gennum.
Gennum will also gain from Tundra’s presence in high-growth regions such as Asia and China.
If all necessary approvals are obtained, Tundra and Gennum still expect the deal to close on or about June 1, 2009.