RF product manufacturer Microtune announced today that it was acquiring privately held Auvitek for $9 million in cash and stock.

The deal has to pass the usual gauntlet of closing conditions, but it is expected to close sometime this month.

Microtune is a supplier of radio frequency (RF) silicon and systems offerings for the cable TV, digital TV (DTV) and automotive entertainment markets. Auvitek is a supplier of advanced DTV demodulator integrated circuits (ICs) for the HDTV and TV-enabled peripherals markets, with primary engineering operations based in Shanghai, China.

Microtune said the addition of Auvitek’s complementary digital components would transform it from a pure-play tuner supplier to a developer of highly integrated RF-to-bits offerings.

"The acquisition of Auvitek’s team and technology will not only enable us to target a larger opportunity in the worldwide integrated digital TV market, but also will allow us to better serve customers with more complete solutions," said Microtune President and CEO James Fontaine. "It enriches our portfolio of products; it substantially builds our intellectual property and employee talent base; and it adds resources, alliances and relationships that will help accelerate penetration into the China digital TV market.”

Upon the close of the deal, Microtune will wholly own Auvitek. Current Auvitek President and CEO Pete Birch will become vice president and general manager of the newly formed Microtune Digital Television Business, reporting to executive vice president Barry Koch.

Under the terms of the deal, Microtune will pay approximately $6.8 million in cash and 1 million shares of Microtune stock, with a current value of approximately $2.2 million, for the Auvitek business.