Interesting acquisition indeed. I can see some clear advantages to having mental image in-house; however, historically, I'd still have said it might not be worth the money. But NVIDIA is going to end the year with $2B+ in cash, so I'm sure they figure they might as well use it for strategic acquisitions like that one.
I also ponder whether more minor and/or major acquisitions are going to follow. There's only so much NVIDIA can spend its cash on ($300M+ cash flow/quarter; that'd be overkill for buyback imo). At least they're still hiring super-aggressively:
- January 2005: 2101 employees.
- January 2006: 2737 employees.
- January 2007: 4083 employees.
- November 2007: 4609 employees.
Are we sure NVIDIA didn't misunderstand Moore's Law, and presumed it to refer to numbers of employees?
EDIT: As for Mental Images, a bit of gooling around tells me they had 100-250 employees (presumably much nearer to 100) with $10-50M revenue. Still, not small.