Creative to buy 3Dlabs for $208 million

Creative Technology plans to buy 3Dlabs for approximately $208 million in stock and cash.

3Dlabs said it would continue to sell, support and develop its existing products once the merger is complete. The companies will combine 3Dlabs' technology and Creative's manufacturing, financial and distribution resources.

This will help 3Dlabs in its development of products, including the company's re-entry into the volume desktop graphics market with a planned line of graphics processors to be introduced later in 2002.

3Dlabs' product lines include Wildcat and Oxygen, both of which will continue to be developed and supported, with no expected disruption in supply to any of its customers. 3Dlabs will also continue to supply its chip and IP products to its embedded customers and will continue its standardisation activities with OpenGL 2.0, OpenML and embedded OpenGL in the Khronos Group and the Web3D Consortium.