Taiwan-based smartphone maker HTC will acquire S3 Graphics in a $300m cash deal.
HTC hopes the purchase will allow it access to patents as it fights Apple on patent infringements, reported Bloomberg.
The image-compression technology of California-based S3 Graphics is used by Nintendo and Sony on their gaming machines.
Chief financial officer Winston Yung said that the company will pay $300m to sellers VIA Technologies (12.5% stake), and WTI Investment International, a holding company.
Yung said that VIA will receive $147m, while WTI will get $153m.
"Buying a patent portfolio will be very useful to us," Yung told Bloomberg.
However, HTC dipped the most in three weeks in Taipei trading. This happened after Citigroup cut the stock’s rating and raising concerns over HTC’s plans to acquire S3 Graphics, reported Bloomberg.
