NVIDIA will pay $3.75 million for the technology which is currently part of TransGaming's Graphics and Portability Group, and includes Cider, which helps game developers port PC games to Apples's (AAPL) Mac OS X. The deal does not include TransGaming's SwiftShader, its 3D rendering technology.
Following the deal NVIDIA will open an office in Toronto, its first in Canada, which will be staffed with about 15 employees from TransGaming.
TransGaming will become an NVIDIA GRID preferred partner as part of the deal, and will use the chipmaker's cloud gaming technology in its GameTree TV service.
About 2.9 million shares of NVIDIA were traded by 11:58 a.m. Thursday, compared to the company's average trading volume of about 8.1 million shares a day.
TheStreet Ratings team rates NVIDIA CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NVIDIA CORP (NVDA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."