Betting that consumers will watch television on their cell phones,

Analog Devices

(ADI) - Get Report

is spending $127 million to acquire a Korean chip company.

ADI announced after Wednesday's market close that it will buy privately held

Integrant Technologies

in a cash transaction. Seoul-based Integrant, founded in 2000, makes low-power radio tuners that enable mobile devices such as cell phones to receive digital television broadcasts.

The deal will increase ADI's revenue by about 1% for each of the next few quarters, the company said. ADI said that Integrant's revenue base and gross margin levels are consistent with "highly differentiated, low-power RF technology."

"As we've seen in applications from cellular telephony to digital TVs, customers value RF solution providers that support multiple standards and frequencies with compatible families of products," said John Hussey, ADI's VP of high-speed signal processing, in a statement.

He said that Integrant provides a valuable technology in the nascent mobile TV market, in which receivers are being integrated into cell phones, portable DVD players, notebook PCs and automotive entertainment systems.

Under the terms of the cash deal, which has been approved by both companies' boards, ADI will acquire substantially all of Integrant's shares. ADI may pay up to an additional $33 million if certain milestones are met.

The deal is expected to close within 60 days, pending regulatory approval. ADI said it will incur an undetermined one-time charge for purchased in-process research-and-development expenses.