Microtune announced the signing of a agreement to acquire privately-held Auvitek International, Ltd. for approximately $6.8 million in cash and one million shares of Microtune stock. The acquisition is expected to close during the month of July. Microtune is a supplier of radio frequency silicon and systems solutions for the cable TV, digital TV and automotive entertainment markets.

Auvitek is a supplier of DTV demodulator integrated circuits for the HDTV and TV-enabled peripherals markets with primary engineering operations based in Shanghai, China.

Upon the close of the acquisition, Auvitek will be wholly-owned by Microtune. Pete Birch, President and CEO of Auvitek will become Vice President and General Manager of the newly-formed Microtune Digital Television Business.