Sage (SAGI) up 24.6% in preopen Island trading after video and graphics chipmaker Genesis Microchip (GNSS) said it would buy the maker of flat-panel display chips in a $241 million stock swap.

Genesis will issue a 0.571 share for each outstanding share of Sage, valuing Sage at about $15.59 a share. That represents about a 37% premium over Sage's closing price Thursday of $11.36.

Genesis said the acquisition should boost earnings beginning in the first full quarter of the combined company.

Genesis was down 5.9% on the Instinet ECN.