Chip maker STMicroelectronics announced yesterday it will expand its position in the $1.5 billion digital TV market by acquiring Genesis Microchip Inc. of Santa Clara, Calif., a supplier of display image processors to the flat-panel TV and LCD monitor markets, for $336 million. Under the terms of the agreement, Geneva-based STMicroelectronics will purchase all outstanding shares of Genesis Microchip through a tender offer for $8.65 per share, for a total of approximately $336 million. The offer price represents a premium of 60 percent over Genesis Microchip's closing share price on Monday, Dec. 10, and 26 percent over the company's average share price during the two months prior to the acquisition announcement. Genesis reported revenues of $191 million and cash and short-term investments of approximately $183 million for the 12 months ending Sept. 30, 2007.The acquisition will combine STMicroelectronics' "front end" digital TV processing with Genesis' "back-end" image and video processing and digital interconnect technologies, said Philippe Lambinet, corporate vice president and general manager of STMicroelectronics' Home Entertainment & Displays Group, in a statement. At closing, Genesis will become part of that group and Genesis Microchip President and CEO Elias Antoun will lead STMicroelectronics' television and display initiatives under Lambinet. The acquisition, which STMicroelectronics said it will finance with cash on hand, was unanimously approved by the Genesis board of directors. STMicroelectronics said it expects the buyout to begin by Dec. 18 and be completed in the first quarter of 2008. The offer is subject to customary closing conditions, including regulatory approvals. For more information, visit: www.st.com