Diamond to Buy Orchid

The decision over which Voodoo2 board to buy is going to get a lot easier as the two best-selling card makers will soon become one.

In the agreement, Diamond Multimedia Systems will acquire Micronics Computers, the parent company of Orchid Technologies, for US$2.45 per share, or $31.6 million. The transaction is expected to pick up speed within the next five days and should be completed sometime in June 1998 (as long as regulatory approval and other customary conditions are met). So far theboards of directors of both companies have approved the deal.

The merger will enable Diamond to branch out beyond its current product line and capitalize on the expertise that Micronics uses to build motherboards for both high-end and low-end systems. Diamond intends to continue selling the Orchid Righteous 3D card alongside its already established Monster 3D brand.