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3Dfx buys STB for $141 million

Closer integration and cheaper prices, promise companies

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3Dfx Interactive has bought graphics board manufacturer STB for an estimated $141 million. The deal will be accounted for by a share-for-share transaction, with STB investors getting .65 shares of 3Dfx common stock. Subject to regulatory details, the acquisition will be completed by March of next year and helps to catapult 3Dfx into an even more powerful position in the add-in-board business. It could also narrow the options for end users but both companies said the deal will mean there will be a single source for 3Dfx branded add--in-boards, which will help price stability. Technically, it will allow for closer integration at the chip, software and board level and faster designs for cheaper solutions, 3Dfx said. The companies gave no details of future rationalisations on the job front. 3Dfx products include Voodoo chip sets, and Voodoo Banshee. STB has specialised in video drivers and graphics controllers. ®

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