Terayon Sells Cable Modem Silicon to ATI

ATI Technologies Inc. will buy Terayon Communications Systems' cable modem silicon intellectual property for up to $14 million in cash, the two companes announced Tuesday. The definitive agreement also calls for ATI to hire about 25 employees from Terayon's design team. The companies said nearly $7 million of the sales price will be paid when the deal closes. They said the rest of the sum is dependent on "the satisfaction of certain conditions," including the "completion of certain deliverables." With the purchase, ATI, which shipped more than 5 million digital TV chips to consumer electronics manufacturers last year, aims to cement its position as the leading supplier of silicon in Digital Cable Ready (DCR) HDTV sets.
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