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Maxim buys H.264 video compression specialist

Posted: 21 Oct 2008 ?? ?Print Version ?Bookmark and Share

Keywords:digital video? H.264? security market? video compression?

Maxim Integrated Products Inc. has entered into a definitive agreement to purchase Mobilygen, a privately held, fabless semiconductor company that specializes in H.264 video compression. Completion of the transaction is subject to customary closing conditions. The transaction is expected to close in the Q4 08.

The acquisition of Mobilygen brings H.264 video compression technology positioning Maxim to become a key supplier to the $2B video security semiconductor market. MultiMedia Intelligence, a leading authority in the market for video surveillance semiconductors, recently reported the market for silicon content in security equipment will surpass $2 billion by 2012. The increase in the market is attributed to top-line unit growth in surveillance equipment and a gradual shift from analog systems to mixed signal and networked solutions.

Maxim expects the served available market for H.264 compression in IP cameras and digital video recorders to be in excess of $200 million in the company's 2012 fiscal year.

The security industry has adopted H.264 as the next-generation video compression standard for streaming, recording, and archived file storage. Mobilygen, with approximately 50 highly trained engineers and technical experts, is a pioneer in the design of market leading H.264 compression SoCs for the security market and is a recognized leader in resultant video quality, power consumption and cost-per-channel.

Vijay Ullal, Maxim Group president commented: "Video security is an important growth market for Maxim. The overwhelming majority of security cameras installed today are analog, whereas recording, storage, analytics, and IP streaming are digital. Video compression is therefore a strategic technology for Maxim in the analog-to-digital video signal path."

Maxim multimedia business unit VP, Ron Clark added, "Mobilygen's video codec technology offers customers a 2x cost advantage and up to 10x lower power consumption versus a typical DSP solution. Their patented architecture renders superior video quality at the lowest possible bit-rates for maximum record capacity and improved network bandwidth efficiency."

Maxim expects Mobilygen to become accretive to its earnings in fiscal year 2010 as a result of Maxim's economies of scale, and new demand created through synergies with Maxim's broad portfolio of complimentary video, audio, power management, wireless and interface products.

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