(By Balaseshan) GEO Semiconductor Inc. has agreed to buy the digital video processing business from Maxim Integrated Products Inc. (NASDAQ: MXIM) for undisclosed sum.
Through this acquisition, GEO expands its IP portfolio to approximately 100 patents, including a world-class H.264 video compression and audio processing portfolio.
This transaction will also provide GEO immediate and greater access to markets such as IP camera, Smart TV, surveillance, tele-presence video communications, and smartphone peripherals.
These markets complement GEO's increasing focus on automotive camera and HUD opportunities. Combining GEO's proprietary technology with the IP from Maxim will enable single-chip solutions for all of these markets, increasing market share and lowering costs to customers.
"This transaction is transformational for GEO as we are seeing an explosion in camera-based applications in mobile, automotive and industrial applications. Combining our eWarp technology with H.264 compression enables the creation of world-class single-chip (SoC) solutions that reduce the bill of materials and drive massive adoption into these rapidly growing markets," said Paul Russo, GEO's Chairman and CEO.
The transaction is expected to close prior to December 31, 2012.
GEO's highly patented eWarp platform technology features the lowest power and silicon cost for performing unlimited pixel transformations such as de-warping wide-angle, fisheye and 360 degree video streams and enabling all digital ePTZ (electronic pan/tilt/zoom).
MXIM is trading up 1.47% at $29.63 on Thursday. The stock has been trading between $23.55 and $30 for the past 52 weeks.