VIA Technologies and WTI Investment International have sold S3 Graphics to HTC Corporation for $300 million. S3 Graphics was acquired by VIA Technologies in 2001. S3 Graphics is a provider of graphics visualization technologies for computers, game consoles and, mobile devices. HTC is a global designer of mobile phones.
The boards of directors of VIA, WTI, and HTC have approved the terms of the transaction. The transaction is expected to close before the end of 2011 and is subject to regulatory approvals and other customary conditions. Of the $300 purchase price, VIA will receive $147 million, and WTI will receive $153 million. VIA will recognize a capital gain of $37 million and paid-in-capital of $115 million in this transaction.
WTI is a private investment company. Cher Wang, Chairman of VIA, is a significant shareholder of WTI.WTI Investment International became an investor in 2005 to help fund S3 Graphics’ operations and R&D initiatives.