Parthus, the Dublin-based chip design firm, has paid an initial $41.4 million (€47.1 million) in cash and shares to acquire a private US technology firm. Chicory Systems, which employs 26 staff at its office in Texas, develops technology that increases the speed and efficiency of mobile Internet technologies.

Parthus will pay $11.7 million in cash and up to $22.6 million in paper, and an additional 20.6 million shares may be issued if Chicory achieves certain performance targets.

Mr Kevin Fielding, president of Parthus, said the technology would complement Parthus's own portfolio and would also be integrated into several of its products.

This process has already started and yesterday Parthus introduced an intellectual property-based application called MachStream.

This incorporates Chicory technology and will form part of Parthus's suite of enabling solutions for mobile Internet.

Mr Paul Phelan, technology analyst with Davy Stockbrokers, said the acquisition looked like a good deal although the real benefits may not accrue to Parthus for 12-18 months.

"It is a pure technology acquisition and certainly Chicory's platform looks unique and well protected with about 25 patents logged," he said.

Strong demand for more powerful wireless devices which have more long-lasting battery strength should drive growth for Chicory's key technology, said Mr Phelan.

This represents the second acquisition made by Parthus in a week following a deal to acquire a remaining 20 per cent of Silicon Systems Design from ST Micro.

Mr Fielding said Parthus maintained a cash stockpile of some $125 million for acquisitions. But any potential deals would be balanced with the need to integrate existing acquisitions. Shares in Parthus finished down 2p, at 98.5p sterling in London.