SIMG » Topics » NOTE 11 - SUBSEQUENT EVENTS

This excerpt taken from the SIMG 10-K filed Mar 1, 2007.
NOTE 11 — SUBSEQUENT EVENTS
 
In January 2007, the Company completed its acquisition of sci-worx GmbH (“sci-worx”), an intellectual property (IP) and design service provider specializing in multimedia, communications, and networking applications. Prior to the acquisition, sci-worx was a wholly-owned subsidiary of Infineon Technologies AG. The acquisition will be accounted for under the purchase method. The purchase price allocation has not yet been finalized. We purchased all of the outstanding shares of capital stock of sci-worx and paid sci-worx’s intercompany debt to another Infineon subsidiary. The purchase price for the acquisition was $13.6 million in cash for sci-worx’ capital stock and its intercompany debt (net of its cash balances at closing).
 
In February 2007, we entered into a Video Processor Design License Agreement (the “License Agreement”) with Sunplus. Under the terms of the license agreement, we will receive a license to use and further develop advanced video processor technology. The License Agreement provides for the payment of an aggregate of $40.0 million to Sunplus by Silicon Image, $35.0 million of which is payable in consideration for the licensed technology and related deliverables and $5.0 million of which is payable in consideration for Sunplus support and maintenance obligations. Silicon Image paid Sunplus $10.0 million of the consideration for the licensed technology and related deliverables in February 2007, and is required to pay the remaining $25.0 million upon delivery and completion of certain milestones. The $5.0 million to be paid for support and maintenance by Sunplus is payable over a two-year period starting upon delivery of the final Sunplus deliverables. The license agreement also provides for the grant to Sunplus of a license to certain of our intellectual property, for which Sunplus has agreed to pay the Company $5.0 million upon delivery and acceptance of such intellectual property.
 
In February 2007, we announced that our Board of Directors authorized a stock repurchase program under which we intend, from time to time, as business conditions warrant, to purchase up to $100 million of common stock, on the open market, or in negotiated or block transactions. Purchases may be increased, decreased or discontinued at any time without prior notice. As of March 1, 2007, no shares had yet been repurchased under this stock repurchase program.


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SILICON IMAGE, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

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