SAN JOSE, Calif. -- Chip-packaging specialist Tessera Technologies Inc. has entered into a definitive agreement to acquire FotoNation Inc., a provider of embedded imaging IP for digital still camera and mobile phone applications.
Under the terms of the agreement, Tessera will pay $29 million in net cash with up to $10 million of additional consideration, contingent upon certain milestones over one year. This transaction is subject to various standard closing conditions, and is expected to close in February 2008.
Based in Burlingame, Calif., FotoNation is a privately-owned, 80-person company that develops embedded solutions to improve image quality for digital still cameras and mobile devices.
Principal products encompass technologies for red-eye correction; face tracking; smile and blink detection; as well as other solutions for enhancing digital image quality. FotoNation's technology is embedded in more than two out of three digital still cameras sold today.