UK microchip maker CSR has bought Silicon Valley chip-maker Zoran for £430m.
The merger will enable CSR to better compete in the consumer electronics market, says the company.
Joep van Beurden, CEO of CSR, says Zoran's imagining and video capabilities will create new and wider revenue opportunities that neither party could pursue on its own.
"This is an exciting transaction on both a strategic and financial level. Digital electronic devices are becoming increasingly connected and full of media-rich features, including the ability to stream images from your camera to your PC or video conferencing from your Smartphone," he says.
Dr Levy Gerzberg, co-founder, president, CEO and director of Zoran, adds: "With this transaction, we can leverage the world class technology, talent and resources of two great companies and create compelling opportunities for our customers, employees and consumers."
Writing on his blog, Richard Holway, analyst at TechMarketView, says while the ambition of CSR should be applauded, the size of the acquisition could create some integration issues.