High-end graphics pioneer Evans & Sutherland Computer Corp is to acquire one of its 3D graphics board partners, AccelGraphics Inc for $52m in cash and stock, or $5.75 a share. Milpitas, California-based Accelgraphics was one of the earliest companies to ship a professional 3D graphics subsystem for Windows NT workstations at the beginning of 1995 and takes the E&S RealImage chip technology as the basis for its AccelEclipise II graphics boards. E&S has its eye on the exploding market for Windows NT workstations, to which it has been supplying chip level products through its partnership with Mitsubishi Electric Co. Now it wants to go up one level to supply graphics accelerator boards to the same market. Accelgraphics has been making good ground in this area, and recently signed up NEC Corp to take its boards for the newly launched Powermate Professional 9000 NT workstation. Other Accelgraphics customers include Acer America Inc, Gateway 2000 Inc, Hewlett-Packard Co, Hitachi Ltd and Intergraph Corp. The move might not please other RealImage customers, such as Diamond Multimedia Inc, which supplies Compaq Computer Corp, Micron Electronics Inc and Siemens; or Digital Equipment Corp, which uses the E&S technology for its PowerStorm graphics board. But E&S says it will continue to supply chip-level components. The Salt Lake City, Utah-based company will take a one-time write-off in its third quarter for in-process research and development. The transaction is expected to be completed early in the third quarter.
