Intersil to buy Techwell for $400M

NEW YORK (AP) - Intersil Corp. said Monday it has reached deal to buy Techwell Inc. for about $400 million in cash to strengthen its portfolio of video-processing chips.

Milpitas, Calif.-based Intersil is paying $18.50 per Techwell share. Net of Techwell's cash and equivalents, the deal values the San Jose, Calif., company at about $370 million, Intersil said.

Techwell shares rose $5.94, or 48 percent, to $18.38 in Monday afternoon trading. Intersil shares fell 18 cents, or 1.1 percent, to $15.15.

Techwell has more than 200 employees in the U.S., China, Japan, South Korea and Taiwan. It makes video processing chips for security camera systems, LCD displays and cars. Intersil makes chips for video chips as well as power management.

Intersil expects the deal to close in the second quarter and add to its 2010 earnings excluding one-time costs and other acquisition-related charges.