ATI and SONICblue today announced the proposed sale of SONICblue’s FGL Graphics division to ATI for up to $10 million.
The intent to acquire FGL Graphics by ATI represents the Company’s formal entry into the workstation graphics market. ATI expects the acquisition of FGL Graphics to be neutral to earnings this fiscal year.
FGL Graphics, which develops and markets the technology-leading Fire GL brand of OpenGL-based graphics accelerators, is a leading provider of solutions for the NT and Linux workstation markets. Under the terms of the letter of intent, SONICblue will receive $2.7 million in cash and is eligible to receive further financial consideration of up to $7.3 million, contingent upon FGL Graphics achieving future performance targets. ATI will acquire FGL Graphics’ business with the world’s major suppliers of high-performance workstation systems, including contracts with Compaq, Dell, Fujitsu, Hewlett-Packard, IBM and Siemens; the right to use the technology-leading Fire GL brand name; and 35 highly-skilled employees at FGL Graphics research and development and marketing facilities in Munich, Germany, and San Jose, California.