Zoran Corporation is to buy Yoqneam, Israel-based Oren Semiconductor for $44.6 million in cash.

Prior to the acquisition, Zoran's had a 17% share in the TV-chip supplier. Now, Zoran will acquire the remainder of Oren's outstanding stock for $44.6 million in cash and stock.

Zoran has already worked closely with Oren for the past year designing new ATSC/NTSC reference designs that combine Oren's Cascade demodulator ICs with Zoran's Generation 9 and SupraHD multimedia processors.

Zoran expects the deal to be accretive to the Company's earnings no later than the first quarter of 2006.

It is still subject to applicable regulatory approvals and other customary closing conditions and is expected to be completed during the current quarter.