“This acquisition of assets from AMD’s handheld business brings us strong multimedia technologies, including graphics cores that we have been licensing for several years,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “Bringing this technology in-house creates even greater synergy as we seamlessly integrate the best-in-class multimedia performance AMD offers into our system-on-chip (SoC) products.”

The two companies signed and closed a binding agreement on January 19, 2009, having already received required regulatory approvals. Cash consideration from Qualcomm to AMD, as part of the transaction, is $65 million, subject to adjustments for employee-related expenses and a holdback for certain customary indemnification obligations.

“Including the DivX codec in the AMD Imageon application processor brings additional value to our OEM customers, helping them to deliver a robust mobile media experience,” said Mark Bapst, CTO for AMD’s Handheld division. “DivX technology is an attractive ingredient that enhances our offering for handheld devices, providing excellent quality and a high degree of accessibility.”

The two companies will work together to achieve DivX Certification for the AMD Imageon A250 application processor. Products that bear the DivX Certified logo have undergone a rigorous testing program to ensure a high-quality DivX media experience, including reliable video playback, interoperability with other DivX Certified devices and the visual quality users expect from DivX.