Earlier this year we reported that Montalvo Systems was getting ready to unveil details on their first product, a multi-core energy efficient CPU aimed at notebooks and ultra-portables. However the Silicon Valley-based start-up that was founded in 2005, and was being guided by former Transmeta CEO, Matt Perry, could no longer survive through the storm and had to be rescued so to speak by Sun Microsystems.

Sun has now acquired the company for an undisclosed sum, though The Register suspects the sale could have gone for as little as $5 million, after the start-up burned through $75+ million in funding over the past few years. Sun, who is better known in the processing world for its SPARC and UltraSPARC processors, may be looking to leverage its position in the mainstream market against Intel.