WorldWide Tech & Science. Francisco De Jesús.
Nvidia has agreed to buy Icera to expand its business in the mobile phone and tablets market. Both companies have already approved the takeover for USD 367 million cash, and the deal is expected to close within 30 days.
The takeover gives Nvidia the over 550 patents held by Icera as well as broadband wireless modem products used by more than 50 carriers worldwide. This adds to Nvidia's own growing market position with its Tegra processor for mobile devices.
Nvidia said the deal is expected to be slightly dilutive on an operating basis through the first half of 2012, and add to operating profit from the second half of next year, before factoring in any revenue synergies. Overall, Nvidia expects to double its revenues per device, as it will be able to offer both the application processor and baseband processor following the takeover.
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