Graphic card maker Nvidia has decided to acquire UK based mobile phone chip maker Icera for $367 million in cash.
Icera specialises in developing baseband processors for 3G and 4G technology found in Smartphones and tablets. The acquisition will allow Nvidia to forge ahead into the mobile processor market, largely dominated by ARM.
The company has more than 550 acquired or pending patents worldwide related to its mobile broadband technologies while its high speed wireless modems have been approved by more than 50 mobile phone carriers worldwide.
Nvidia reckons that the global market for baseband processors is worth $15 billion per year, therefore the acquisition will allow it to boost its position in the market.
Nvidia plans to integrate Icera’s technology into its Nvidia Tegra line of processors, allowing it to strengthen its position in the growing mobile market worldwide. The company expects to complete the acquisition within the next 30 days.
“This is a key step in NVIDIA's plans to be a major player in the mobile computing revolution," said Jen-Hsun Huang, President and CEO of Nvidia, in a statement.
"Adding Icera's technology to Tegra gives us an outstanding platform to support the industry's best phones and tablets. Icera is a perfect fit for NVIDIA. Our businesses are complementary. Icera has the right team, with a strong, proven track record. And their nimble, entrepreneurial, engineering-focused culture mirrors our own," he added.