Novafora Inc., a developer of video processors, said yesterday that it's buying Transmeta Corp. for $255.6 million in cash.

Privately held Novafora will pay Transmeta shareholders between $18.70 to $19 per share, depending on Transmeta's future working capital and other adjustments . Once the deal passes shareholder and regulatory approval, the acquisition is slated to close in the first quarter of 2009.

Both of the companies’ boards have already approved of the deal.

“Adding Transmeta's power management technology to our video processor will advance our vision of making our products applicable across the broadest range of video-oriented devices," said Novafora CEO Zaki Rakib.

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