Tarrytown, N.Y. - On2 Technologies, a developer of digital video compression and streaming technologies, announced on Tuesday that it will acquire Hantro, a Finland-based developer of video technology for mobile devices, for about $58.4 million in cash and stock.

At close, Hantro stockholders will own about 12% of the combined company.

Hantro's products include hardware and software MPEG4, H.263, H.264/AVC and VC-1 video codecs, audio and still image codecs used in IPTV, mobile TV, camcorders, media players and video telephony.

Customers including Nokia, Freescale, LSI and Sanyo have implemented Hantro's technology on more than 200 million devices to date.

On2's video compression software is used by firms including Adobe, AOL, Skype, Sony and XM Satellite Radio.

"By gaining access to Hantro's technology and expertise in chip implementation, we expect to be able to extend our reach on devices," said On2 president and CEO Bill Joll.

"Consumer electronic equipment suppliers should soon be able to deliver devices that can play longer high quality videos at a significantly lower cost."

Related Links:
http://biz.yahoo.com/prnews/070521/nym191.html?.v=66

http://www.on2.com

http://www.hantro.com