NVIDIA to acquire baseband chip company Icera for $367 million

by Scott Bicheno on 9 May 2011, 14:39

Tags: NVIDIA (NASDAQ:NVDA)

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Chipping away

Graphics company NVIDIA has agreed to acquire Bristol-based Icera for $367 million. A major focus for Icera is baseband processors, which receive raw mobile data from the modem and process it for use by the application processor.

While application processors, such as NVIDIA's Tegra 2, get most of the headlines, the baseband processor can have just as profound an effect on the performance of a mobile device - especially when streaming data.

NVIDIA clearly wants to be able to offer a more complete mobile chip solution and will now be able to deliver the application and baseband processors on one piece of silicon. Not only will this solve one more problem for its customers, it should also result in reductions in price, power and silicon.

"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. "Adding Icera's technology to Tegra gives us an outstanding platform to support the industry's best phones and tablets."

Icera was founded in 2002, but the first Icera-powered products didn't arrive until 2007. Icera sells software-based baseband technology, which runs on its own DXP processor. It sells these chips to many of the leading handset-makers. NVIDIA was quick to stress that it will continue to collaborate with its existing baseband partners and respect its customers' baseband chip choices.

NVIDIA announced it was supporting Icera chips with Tegra back in the middle of 2009, so the two companies clearly have an established working relationship. "NVIDIA's Tegra processor has the most impressive roadmap in the industry, and it is an ideal match for Icera," said Icera boss Stan Boland. "As part of NVIDIA, we will be able to reach a broader market. Our team has collaborated closely with NVIDIA for several years on a range of projects, and we're delighted to be joining forces."

 



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Slight article typo - there is a missing million in the article.

Regarding the acquisition I hope UK jobs are kept or maybe this will mean more people will be hired at the site.

I wonder if at this rate ARM will be bought up too by another company.
Like Apple? :D

I think the ARM one is an odd question. While i know we're meant to take analysts thoughts with a PoS form what i can tell/read its either that the ARM bubble will burst, or that it will just keep going from strength to strength. While that is as obvious as saying a football match will end in a win, draw or loss - ARM's current trend will most likely see it at the extremes of the scale, who knows, maybe even ARM will buy Nvidia up for example.
CAT-THE-FIFTH
Slight article typo - there is a missing million in the article.

Regarding the acquisition I hope UK jobs are kept or maybe this will mean more people will be hired at the site.

I wonder if at this rate ARM will be bought up too by another company.

I'm always doing that - nearly did it in the headline!!

I still don't think there's any point in buying ARM. It's too ubiquitous for anyone to be allowed to deny the rest of the market access to its technology and it would take a long time to get ROI on the cost of paying licenses and royalties.
From the press release.
This expectation does not take into account significant revenue synergies that the companies anticipate.
That sounds ominously managerspeak.