Sun buys CPU developers Montalvo Systems
As already speculated several weeks ago, Sun Microsystems is to take over Montalvo Systems, a company founded by former Transmeta employees a few years ago. The startup company has so far reportedly worked on high efficiency x86 processors. Montalvo Systems not only operates from its Silicon Valley headquarters, which are only a stone's throw away from the headquarters of Intel and Sun, but also from Bangalore, India. Its board of directors includes former Intel and NexGen developer Vinod K. Dham, who specifically targets companies which also develop semiconductor components in India, for investment.
However, Montalvo Systems' main development project is said to have failed and the company is reported to have exploited its initial venture capital injection of about $74 million. Sun and Montalvo appear to have agreed not to disclose the details of the takeover transaction; UK website The Register reports, however, that Sun is to pay around $5 million and will only acquire the company's know-how and assets.