Nvidia ( NVDA), a maker of graphics processors, agreed to acquire Finland's Hybrid Graphics, a developer of software for handheld devices.

Financial terms of the deal weren't disclosed.

"Over the next decade, billions of handheld devices will be sold, and for many, they are likely to become their most important computing device," Nvidia said Wednesday.

"These powerful and multifunction handheld devices will require rich graphics, and by combining with the recognized leader in handheld graphics software, we are positioned to accelerate the adoption of graphics by offering the handheld industry a range of solutions from software to IP to GPUs," the company continued.

Hybrid Graphics will continue to market and sell products under its own name. The company's customers include Nokia ( NOK), Ericsson ( ERICY) and Philips Electronics ( PHG).

Shares of Nvidia, Santa Clara, Calif., were down $1.24, or 2.4%, to $49.55 in trading before the opening bell.

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