Surveillance semiconductor company Maxim Integrated Products announced that it will buy private video chip maker Mobilygen for an undisclosed amount. The large public company hopes the acquisition will provide it with the compression technology it needs to make analog security cameras compatible with digital streaming, recording and storage systems.
Maxim is particularly interested in Mobilygen’s technology because it is cheaper to use and requires less power to operate than other solutions, executives at the company told MarketWatch. The Santa Clara, Calif.-based chip maker, now 50 employees strong, received only one round of funding from investors Kleiner Perkins Caufield & Byers, Redpoint Ventures, Integral Capital Partners, Lehman Brothers, VentureTech Alliance and Cardinal Venture Capital. The amount raised in this round hasn’t been released.
The acquisition is expected to close during fourth quarter this year.
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