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Ilse Jurriƫn : March 15th 2008 - 19:05 CET
Tessera acquires FotoNation

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NewsTessera acquires FotoNation : Tessera Technologies, provider of miniaturisation technologies for the electronics industry, announced it has entered into a definitive agreement to acquire FotoNation, provider of embedded imaging solutions for digital still camera and mobile phone applications. With this acquisition, Tessera will expand its portfolio of integrated consumer optics solutions and be positioned to become a 'one-stop shop' for a full range of camera imaging technologies. Tessera will pay $29 million in net cash with up to $10 million of additional consideration, contingent upon certain milestones over one year. This transaction is subject to various standard closing conditions and is expected to close in February 2008.
Tessera acquires FotoNationImage enhancement technologies
"FotoNation's solutions are a perfect complement to Tessera's image enhancement technologies and the combined strengths of our two companies will help drive the proliferation of digital still camera functionality in mobile camera devices, as well as open new channels such as digital still cameras for our product portfolio," said Bruce McWilliams, chief executive officer, Tessera.

FotoNation - To improve image quality
Based in Burlingame, Calif., FotoNation is a privately-owned, 80-person company that develops innovative embedded solutions to improve image quality and enhance, extend and simplify picture taking for digital still cameras and mobile devices. The company's extensive portfolio of patented solutions includes advanced hardware and firmware image processing solutions. Principal products encompass technologies for red-eye correction; face tracking; smile and blink detection; as well as other solutions for enhancing digital image quality. FotoNation's technology is embedded in more than two out of three digital still cameras sold today.

Tessera image solutions - Camera phone market
"There is significant, untapped potential for sophisticated imaging solutions in the growing camera phone market, and Tessera's close ties to this market will enable us to accelerate the commercialisation of FotoNation's rich portfolio of technology and products," said Eran Steinberg, chief executive officer, FotoNation. "Through this acquisition, we see highly compelling opportunities resulting from combining FotoNation's advanced image processing technologies with Tessera's consumer optics products."

About Tessera Technologies
Tessera is a leading provider of miniaturisation technologies for the electronics industry. Tessera provides a broad range of advanced packaging, interconnect, and consumer optics solutions which are widely adopted in high-growth markets including consumer, computing, communications, medical and defence electronics. Tessera's customers include the world's top semiconductor companies such as Intel, Samsung, Texas Instruments, Toshiba, Micron and Infineon. The company's stock is traded on the Nasdaq National Market under the symbol TSRA. Tessera is headquartered in San Jose, California.





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