SANTA CLARA, Calif. (AP) — Nvidia Corp., which makes processing chips for phones and tablet computers, said Monday that it will buy Icera Inc., a British maker of data-modem chips for wireless devices, for $367 million in cash.
The acquisition complements Nvidia's line of Tegra processing chips, and sets the company up to compete against Qualcomm Inc., which already provides both processing and modem chips for portable devices. Nvidia said the deal will allow it to help manufacturers speed smartphones to market, and double the amount of revenue it could make on each device.
Nvidia, which is based in Santa Clara, Calif., said it expects the deal to reduce operating earnings slightly through the first half of 2012.
Icera was founded in 2002 and based in Bristol. It has about 300 employees.
Nvidia shares rose 25 cents to $19.57 in morning trading.