(Recasts, adds details)
Nov 17 (Reuters) - Privately held semiconductor company Novafora Inc agreed to buy microchip designer Transmeta Corp in a cash transaction worth $255.6 million.
The expected offer price of between $18.70 and $19.00 per share is at a 7 percent to 8 percent premium to Transmeta's closing price on November 17.
The deal is expected to close in the first quarter of 2009.
Transmeta also entered into an agreement under which Advanced Micro Devices will transfer 700,000 of Transmeta's preferred stock to the company.
Piper Jaffray & Co. advised Transmeta while GCA Savvian advised Novafora on the deal.
Separately, Transmeta posted a higher third-quarter profit on high revenue growth. Revenue for the quarter jumped to $25.3 million from $44,000 a year ago.
Shares of Transmeta closed up 4.91 percent at $17.52 Monday on Nasdaq.
For the press releases, please double-click . For the alerts, double-click
(Reporting by Eric Yep in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: TRANSMETA TAKEOVER/NOVAFORA (eric.yep@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: eric.yep.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Nov 17 (Reuters) - Privately held semiconductor company Novafora Inc agreed to buy microchip designer Transmeta Corp in a cash transaction worth $255.6 million.
The expected offer price of between $18.70 and $19.00 per share is at a 7 percent to 8 percent premium to Transmeta's closing price on November 17.
The deal is expected to close in the first quarter of 2009.
Transmeta also entered into an agreement under which Advanced Micro Devices will transfer 700,000 of Transmeta's preferred stock to the company.
Piper Jaffray & Co. advised Transmeta while GCA Savvian advised Novafora on the deal.
Separately, Transmeta posted a higher third-quarter profit on high revenue growth. Revenue for the quarter jumped to $25.3 million from $44,000 a year ago.
Shares of Transmeta closed up 4.91 percent at $17.52 Monday on Nasdaq.
For the press releases, please double-click . For the alerts, double-click
(Reporting by Eric Yep in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: TRANSMETA TAKEOVER/NOVAFORA (eric.yep@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: eric.yep.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.