Simulator visual systems specialist Evans & Sutherland (E&S) is to sell its Realimage graphics chip business to Japanese company Real Vision. The deal is worth $12 million in cash plus future royalties worth up to $6 million during the seven-month transition to closing the transaction in April.

At the same time, Salt Lake City, Utah-based E&S is to cut jobs in its simulation business and digital theatre group, an overall 10% reduction in its 840-strong workforce. The company says the cuts are due to the Realimage sale and will result in a simpler structure and reduced overheads, which will support a return to profitability.

The Realimage unit produces high-performance graphics chips for professional video applications and is the result of E&S's 1998 acquisition of Accel Graphics in a diversification bid.

The company has been looking for a buyer for about a year. Real Vision has been a partner with E&S in the development of graphics technology.

Source: Flight International