LONDON DSP Group Inc. is expanding its capabilities in the multimedia business with the acqusition Monday (May 19) of most of the assets of Teleman Multimedia, Inc. (Alviso, Calif.) for $5 million in cash.
Teleman was founded in 1998 and has developed a silicon platform for video compression and decompression designed to interface with image sensors and panel displays.
Santa Clara-based DSP Group said it bought all of Teleman's intellectual property, including patents and other research and development. As part of the deal, it has hired Teleman founder, CEO and CTO John Hong as vice president for video technologies. Also hired were other Teleman engineers in Seoul, South Korea, and Alviso, Calif.
DSP Group plans to build a new team of 40 designers around the Teleman group. They will integrate the Teleman and DSP Group technologies to create new products to meet the market demand for video features.
"The first integrated product has been defined and has secured one design win. Shipments of this product are expected to begin in the third quarter of 2004," said Eli Ayalon, chairman and CEO of DSP Group.
Ayalon said sales of the DSP Group in the fourth quarter of 2004 would increase by 30 percent compared to what was forecast for the fourth quarter of 2003.
The Teleman silicon platform, which features a novel architecture, small silicon area and power consumption, supports compression standards such as MPEG4, JPEG and H263, which are used in video conferencing applications. Work is already in progress to support the H.264 compression standard, which enables improved video quality at low bit rates.