Tessera Technologies, who supply companies like Intel, Samsung and Texas Instruments with advanced packaging, interconnect and consumer optics, have announced an agreement to buy digital image experts FotoNation for $29m in cash as well as a further $10m based on first-year performance.  FotoNation, who develop hardware and firmware solutions for red-eye correction, smile & blink detection and face tracking, already have their products in two in every three digital still cameras sold today, and have been developing the same advanced photography technology for cameraphones.

“There is significant, untapped potential for sophisticated imaging solutions in the growing camera phone market, and Tessera’s close ties to this market will enable us to accelerate the commercialization of FotoNation’s rich portfolio of technology and products” Eran Steinberg, CEO, FotoNation

With ever-higher megapixel counts – and technology such as auto-focus and proper flashes – being incorporated into cellphone cameras, the market is there for advanced functionality traditionally found in standalone cameras to cross over into mobiles.  Tessera expect to position themselves as a “one stop shop” for camera imaging technologies.

The deal is expected to close this month.