Multimedia product developer Creative Technology Ltd is shelling out $77m to buy Malvern, Pennsylvania PCI audio microchip operation, Ensoniq Corp. The purchase will enable the Singapore company to extend its reach in the PCI audio segment of the personal computer and original equipment manufacturer arena as well as bringing new capabilities to its SoundBlaster product. Creative will also get its hands on privately held Ensoniq’s electrical musical instrument market and its OEM partners that include Hewlett-Packard Co and Gateway 2000 Inc. Creative has had an active year in 1997, winning an injunction in a lawsuit filed against Cyrix Corp and its OEM customers alleging they mislead consumers as to the capabilities of Cyrix’s Media GX chipset (CI No 3,159). Creative’s flagship product, the SoundBlaster is a rival to Media GX, but looked to be under siege earlier in the year when a flurry of new media chips hit the market (CI No 3,219). The company reported net profits of $167m for the year on revenue down 6% at $1.23bn (CI No 3,213), and in March looked to cheerier times with the appointment of a new chief executive, Sim Wong Hoo. The acquisition of Ensoniq was completed on Tuesday and will be accounted for as a purchase, but Creative expects a one-time write off relating to the deal.
