Wed, Mar 16, 2005 - Page 11 News List

InterVideo to buy controlling stake in Ulead Systems Inc


InterVideo Inc, a designer of DVD software, said it aims to buy a controlling stake in Ulead Systems Inc (友立資訊) to help lift earnings.

InterVideo, which owns 18.5 percent of Taipei-based Ulead, has made an offer to buy an additional 30.1 percent to 65 percent stake, the Fremont, California-based company said yesterday in a statement.

InterVideo will offer NT$30 (US$0.97) per share for the Ulead stake, which is a 4.3 percent premium to yesterday's closing price on the Taiwan Stock Exchange. The Ulead purchase will be worth between US$23 million and US$49 million, InterVideo said.

Ulead's video- and still-image editing software will add to profit for InterVideo this year, the California company said.

InterVideo said it expects to expand sales in Asian markets with Ulead's help.

"This investment in Ulead is a key component of InterVideo's growth strategy to augment its existing presence in Asia and enhance its ability to deliver innovative products for the convergence of the consumer electronic and PC markets," stated Steve Ro (羅森洲), InterVideo president, in the statement.

Ro, a Taiwanese native, founded the DVD and multimedia software company in 1998 in Fremont, California. Currently, the company has set up three offices in Taipei, Shanghai and Tokyo, according to information posted on the company's Web site.

InterVideo offers a broad suite of digital video and audio multimedia software products -- including the ever-popular WinDVD software -- that allow users to record, edit, author, distribute and play digital multimedia content on PCs and other devices.

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