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.

More from Technology

Jim Cramer's Take on Netflix Earnings (and the Other FAANG Stocks)

Jim Cramer's Take on Netflix Earnings (and the Other FAANG Stocks)

Why Jim Cramer Is Holding Off on Buying Nvidia Stock

Why Jim Cramer Is Holding Off on Buying Nvidia Stock

Why Netflix Is Revealing More Viewership Numbers Now

Why Netflix Is Revealing More Viewership Numbers Now

Cisco Is 'Underappreciated', Poised to Gain from Huawei Scrutiny: JPMorgan

Cisco Is 'Underappreciated', Poised to Gain from Huawei Scrutiny: JPMorgan

3 Things to Know at Market Close: Netflix, Chinese New Year, and KPMG

3 Things to Know at Market Close: Netflix, Chinese New Year, and KPMG