The graphics giant confirmed today the acquisition of PortalPlayer. This company is well known for developing semiconductor, firmware and software platforms for portable multimedia products like personal media players. You can find their platforms in devices such as jukeboxes, car stereos, and standalone audio systems. The total purchase price for the company was $357 million. Board of Directors of both companies have already approved the transaction, but the deal still has to clear regulatory approvals and other customary closing conditions.

"Modern mobile devices are miniaturized yet powerful multimedia computers. At the core of their architectures are complex Application Processors integrating microprocessors, system logic, networking, and multimedia processors," said Jen-Hsun Huang, president and CEO of nVidia. "With this acquisition, we are combining the two essential technologies of next-generation PMPs, PDAs, portable game players, and phones: PortalPlayer's innovative Application Processor technology and NVIDIA's industry-leading GPU technology. With the products created through this combination, we intend to drive the next digital revolution, where the mobile device becomes our most personal computer."

Handheld devices have come so far since the time of the Motorola DynaTAC 8000X. Nvidia is without a doubt looking into new high growth markets and will try to capitalize based on their excellent record in the PC graphics industry.