Processor architecture and core provider MIPS Technologies Inc. announced today plans to acquire Lisbon-based analogue and mixed signal intellectual property (IP) provider Chipidea Microelectronica S.A. for a $147m cash payment.

"Chipidea is the clear leader in analog IP with a broad product base, an impressive array of customers worldwide and excellent financials," said John Bourgoin, MIPS Technologies' president and CEO. "With Chipidea's impressive penetration across a broad range of high-growth embedded markets, and MIPS Technologies' relationships with a large array of customers, we expect to reap significant sales growth from the new partnership. We can offer a more comprehensive, integrated design solution, better serve existing markets, and strategically enter high-growth segments where analog is essential."

Chipidea has been a privately-held company since it was founded in February 1997 by three professors of the electronics and computer engineering department of the Technical University of Lisbon with a scientific background in analog integrated circuit design. Earlier this year, the company closed on some $6.6m in a series C funding round of funding.

Following the transaction, Chipidea will become a newly-formed business group within MIPS Technologies, with its complete product portfolio continuing to be sold under the Chipidea brand. Current Chipidea president and CEO Jose Franca will assume the role of president and general manager for the new business group and has been appointed a member of the board of directors for MIPS Technologies.

Currently, Chipidea has more than 310 employees worldwide, including design centers in Portugal, France, Belgium, Poland, China, Norway, and Macau. The transaction is expected to be accretive to non-GAAP EPS by quarter end June 30, 2008.