Mobile chip specialist Imagination Technologies' purchase of Voice and Video over IP (V.VoIP) and wireless LAN firm HelloSoft is being billed as a reaction to the changing needs of the consumer.

Strategically speaking, Imagination sees more worth in getting involved in the business of data delivery, with media – whether audio or video – an increasingly important part of the smartphone set up.

As such, the deal – which will see HelloSoft acquired for the maximum figure of $47.1 million ($20.2 million delivered up front, the rest reliant on performance) – will give Imagination vital access to the firm's V.VoIP tech.

The deal will be funded as Imagination has also announced a cash placing of up to 12,208,950 new ordinary shares.

Meeting of minds

Imagination CEO Hossein Yassaie believes such tech will compliment his company's own POWERVR multimedia processing IP cores just as well as the two firms will each other.

"Having already worked together as technology partners for a number of years, I am delighted that the HelloSoft’s team has agreed to join forces with Imagination," said Yassaie.

"Together we will be able to deliver a leading edge and seamless media and connectivity proposition that will ride and drive the emerging trends, accelerate time-to-market, enhance the quality of the result and ultimately benefit our customers."

Building a base

Given the ramping up of mobile data delivery methods both, Imagination believes now is just the right time to play its hand in the V.VoIP market.

As a result, it seems to be pitching the acquisition as something of a slow burner, claiming it expects HelloSoft's revenue streams to build progressively only once its markets begin to fully emerge and grow.

"HelloSoft has exciting technology which together with our market leading multimedia and processing capabilities will enable us to deliver media to connected devices whether mobile, within homes or across enterprises," added Yassaie.

"We expect to deliver other complementary and strategic combinations in due course."

[source: Imagination Technologies]