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Published: 31 May 2000 11:30 BST
Geo Interactive Media, an Israeli-based Internet multimedia company, is to acquire Zapex Research, an Israeli semiconductor subsidiary of Brother International, in a deal worth £18m.
Geo will use Zapex's chip technology to develop semiconductors carrying its software for use in mobile appliances. Zapex has already worked with Geo on the recent A3 chip which provides a two-way multimedia function for mobile phones.
Geo will pay three million shares for Zapex. The offer was based on an original estimate of £12 per share, but the price has dropped sharply. Shares on the London stock exchange closed 17.5p up at £6 yesterday after news of the deal.
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