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Nvidia To Buy Mobile Graphics Chip Company

NVIDIA today announced its intention to purchase privately held MediaQ, a leading maker of graphics and I/O chips for cell phones and PDAs.
The deal is valued at $70 million, has been approved by both companies’ boards, and is expected to be completed during the third quarter of Nvidia’s fiscal year, pending regulatory approval. MediaQ’s technology is focused on enhancing several specific aspects of mobile computing: multimedia e-mail, mapping, I/O, gaming, and video. The acquisition will give Nvidiaaccess to the chips and IP that MediaQ has developed to enable 2D and 3D graphics in such products as HP’s iPAQ h2200, h5100, and h5500 series PDAs; MiTAC’s Mio 8380 Smartphone; and Psion’s Teklogix 7535 Handheld. The purchase will better position Nvidia against competitors (including as 3Dlabs, which already has a graphics core that implements OpenGL ES).

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