Video processing chip startup Novafora is set to buy intellectual property (IP) chip licensing firm, Transmeta, for USD255.6m in cash. Under the terms of the pending agreement, Transmeta shareholders are set to make between USD18.80 and USD19 for each share of Transmeta common stock, nearly USD1 above its value. Terms also require Novafora’s consent for any future licensing agreements that Transmeta may strike before the deal closes. The deal is expected to close by the Q1 next year.
Novafora says it will incorporate Transmeta’s LongRun2 power management technologies into a new line of video processing chipsets already under development. Separately, Transmeta is also entering a non-exclusive agreement with Advanced Micro Devices (AMD) that includes the transfer of 700,000 shares of Transmeta Series B preferred stock from AMD to Transmeta.
