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Google gobbles up On2 Technologies for US$106.5 million

Published: 18:56 05 Aug 2009 BST

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Google’s (Nasdaq: GOOG) appetite for bolt-on acquisitions shows no sign of abating. The internet search engine specialist confirmed this morning that it would acquire NYSE Amex listed One2 Technologies (ONT) for US$106.5 million in a stock for stock transaction.  Each On2 Technology shares will be converted into US$0.60 worth of Google Class A stock.

"Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform," said Sundar Pichai, Vice President, Product Management, Google. "We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal."

The offer represents a 57% premium over the closing price of On2 Technologies shares yesterday.

"We're thrilled that On2 is joining one of the world's most innovative companies," said Matt Frost, Interim CEO of On2. "After intensive review of On2 products, Google confirmed our long-held beliefs as to the quality of our video technologies. This transaction is a testament to the hard work of every On2 employee and the strongest possible endorsement of our products and people. On2 will continue to improve, support and sell our products throughout the transition. We believe that Google shares our ambitions and know that our products and expertise, combined with Google's globally recognized brand, ingenuity and resources, will create an incredible team."

On2 Technology is a video compression specialist.

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