Imagination Technologies has bought a UK software tools operation from games developer Sega Technologies to help build the software tools for Imagination's Metagence digital signal processor spinoff.
Cross Products built a tool-chain for the Hitachi SH processor used in Sega's Dreamcast and began a move into selling tools for more generic embedded systems several years ago.
Imagination paid Sega £2m in cash and another £2.2m in shares for Cross Products, taking the entire share capital for the subsidiary.
Forming part of Metagence, Cross will develop a suite of tools for the forthcoming Meta architecture, which will use multithreading techniques to improve throughput. They are expected to appear in the first half of next year.
Immediately following the purchase, Imagination launched a platform builder for Windows CE systems running on the SH together with a target probe and monitor for embedded boards based on the processor.
Hossain Yossaie, CEO of Imagination, said: "It will continue its full support for the SuperH microprocessor architecture."