The acquisition will grant Intel the access to the company's 3D graphics and media processing technology
Chipmaker Intel has signed an agreement to acquire ZiiLabs, a UK-based subsidiary of Creative Technology for $50m.
Intel will pay $30m for Creative's engineering resources and assets that will become part of Intel while the remaining $20m will be for licensing patents with relation to Ziilabs' GPU technology.
The acquisition will enable the chipmaker to access to the company's 3D graphics and media processing technology.
ZiiLabs develops Android-optimised chip designs such as the ZMS-20 and ZMS-40. Creative has acquired ZiiLabs, which was part of graphics firm 3DLabs, in 2002.
In addition, Ziilabs has been promoting its GPU technology that includes support for full profile OpenCL, which Intel has started to integrate into its own GPU architecture.
Creative Technology CEO Sim Wong Hoo quoted by the Inquirer as saying: "With this announcement we gain increased flexibility with the ability to partner with multiple semiconductor companies on advanced design and process technologies, allowing us to mitigate risk while maintaining control over the long-term direction of our product portfolio."