Video processor developer Novafora announced today that it will acquire microprocessor and semiconductor company Transmeta for $255.6 million.

Primarily, the Cupertino Calif. firm is interested in its acquisition’s low-power technology, which it plans to integrate with its own processor to offer more video capabilities on a range of video devices. Transmeta had increasingly turned to licensing its technology recently.

Novafora has raised about $18 million to date from the likes of Gemini Israel Funds and Vortex Venture Capital. Founded in 2004, it’s a good 10 years younger than Transmeta, which made an initial stir but failed to gain traction after the Internet bubble burst.

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