Intel, one of the world's leading producers of computing technology, has signed an agreement to acquire Havok, the company behind physics and AI middleware that has been used in the likes of BioShock, Stranglehold and Halo 2.

While Havok will become a wholly owned subsidiary of Intel, the company states that it will continue to operate as an independent company.

"This is a great fit for Havok products, customers and employees," said Havok CEO David O'Meara. "Intel's scale of technology investment and customer reach enable Havok with opportunities to grow more quickly into new market segments with new products than we could have done organically. We believe the winning combination is Havok's technology and customer know-how with Intel's scale. I am excited to be part of this next phase of Havok's growth."

Havok's technology, and in particular its Havok Physics engine, has been used in over 150 games titles, including Lost Planet, MotorStorm and The Elder Scrolls IV: Oblivion. The developer's technology has also been used by Hollywood in films such as The Matrix and Troy.

"Havok is a proven leader in physics technology for gaming and digital content, and will become a key element of Intel's visual computing and graphics efforts," Intel's Software and Solutions Group general manager and vice president, Renee J. James. "Havok will operate its business as usual, which will allow them to continue developing products that are offered across all platforms in the industry."