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Conexant Buys Maker of Digital Camera Parts

Technology: The chip maker, one of the largest for communications equipment, will issue 1.25 million shares in exchange for Sierra Imaging.

May 24, 2000|From Staff and Wire Reports

Conexant Systems Inc., one of biggest makers of chips for communications equipment, said Monday that it has agreed to acquire a Central California company for about $43.6 million in stock to add components for digital cameras.

The Newport Beach company said it will issue about 1.25 million shares in exchange for all shares and options of closely held Sierra Imaging Inc. in Scotts Valley. The transaction is expected to close within 30 days.

Sierra Imaging, which makes software and semiconductors for digital cameras, will become part of Conexant's personal imaging business, but its office and 55-employee staff will remain in Scotts Valley.

Sierra Imaging also makes part of the sensor device for high-resolution digital cameras, a product that works with a new Conexant sensor product unveiled Monday, said Lisa Thielmann, a Conexant spokeswoman. The acquisition will allow Conexant to offer a complete internal structure for manufacturers of digital cameras, she said.

Conexant also buys into a noteworthy list of Sierra Imaging clients, including Hewlett-Packard Co., Eastman Kodak Co., Polaroid Corp. and Toshiba Corp., Thielmann said.

The agreement was announced after the close of regular trading. Conexant shares fell $1.25 to close at $34.88 a share in Nasdaq trading.

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