Leading graphics card manufacturer NVIDIA, which commands a 64 per cent share of the desktop graphics market and a 60 per cent share of the DirectX 9-compatible chip business according to recent Mercury research figures for Q1/Q2 2003, has signed an agreement to acquire MediaQ Inc, a wireless mobile graphics and multimedia specialist.
Under the terms of the agreement, which has been approved by both companies' respective boards, NVIDIA will acquire the privately held MediaQ for $70 million (Â£43.4m) in total consideration, to be paid predominantly in cash, in a deal which should be concluded during the third quarter of NVIDIA's 2004 fiscal year.
MediaQ is a relatively young wireless mobile specialist, whose core technologies enhance visual display capabilities, improve connectivity and lower power consumption. Along with driver support for leading mobile operating systems, the acquisition should improve NVIDIA's standing in the 3D and 2.5G sectors.
NVIDIA CEO Jen-Hsun Huang believes this is a step forward for the company's aspirations in the mobile arena.
"This acquisition supports NVIDIA's strategy of extending our platform reach and accelerates our entry into the wireless mobile markets," he said on Monday. "The world class team at MediaQ has made significant penetration and created strong relationships with key technology leaders in the areas of handsets, LCD displays, and PDAs, all essential ingredients in the 3G mobile multimedia revolution. The MediaQ acquisition extends NVIDIA's competencies in ultra low power design methodologies and system-on-chip designs, as well as in the Microsoft Pocket PC, Microsoft SmartPhone, Palm, and Symbian operating systems."