Tessera Technologies, a provider of miniaturisation technologies for the electronics industry, is to acquire FotoNation, a provider of embedded imaging solutions for digital still cameras and mobile phones.
Under the terms of the agreement, Tessera will pay $29m in net cash with up to $10m of additional funds, depending on the achievement certain milestones over one year.
The company’s portfolio of patented solutions includes advanced hardware and firmware image processing solutions. Principal products encompass technologies for red-eye correction; face tracking; smile and blink detection; as well as other solutions for enhancing digital image quality.
‘There is significant, untapped potential for sophisticated imaging solutions in the growing camera phone market, and Tessera’s close ties to this market will enable us to accelerate the commercialisation of FotoNation’s rich portfolio of technology and products,’ said Eran Steinberg, chief executive officer, FotoNation.
This transaction is expected to close in February 2008.