3dfx to Acquire GigaPixel

3dfx Interactive has announced an agreement to acquire GigaPixel Corp. in a stock deal valued around $186 million. 3dfx said the purchase price will be paid in around 15.6 million 3dfx shares and options. GigaPixel, a privately held company based in Santa Clara, Calif., has technology that lets low-power and cost-sensitive platforms display high-quality 3D graphics.

George Haber, CEO of GigaPixel, is expected to join the 3dfx board of directors when the deal closes in the third quarter of 3dfx's fiscal year 2001. Shares of 3dfx (NASDAQ:TDFX) gained 1-1/2 to close at 13-7/16 on Monday.