Oak Technology Inc, which makes chips for optical storage systems, is to acquire Xionics Document Technologies Inc for around $74m, in a bid to shift its business towards embedded systems for networked offices. Oak says it plans to combine Xionics’ embedded software with its PixelMagic image processors and compression technologies. Oak acquired the programmable digital signal processing technology from Pixel Magic Inc for $10m in 1995 (CI No 2,785). The business has risen as its traditional CD-ROM controller business has declined.
Oak’s partners include Canon, FujiXerox, Hewlett-Packard Co, Kodak Co and Xerox Corp and its products are used in digital copiers, printers, fax machines, scanners, and multifunction peripherals. OEMs for Xionics’ embedded software, used in office printers, include HP, IBM Corp, Ricoh, Xerox, Seiko Epson and Sharp. Oak will form a new subsidiary from its merged operations. The deal is expected to close in the fall.
