The New York Times is reporting:
In a sign that Amazon wants to upgrade its Kindle ereader to compete head-on with the Apple iPad, Amazon has acquired Touchco, a New York-based start-up specializing in touch-screen technology, a person briefed on the deal said Wednesday.
Amazon will merge Touchco’s technology and staff into its Kindle hardware division, Lab126, which is based in Cupertino, Calif., this person said.
Touchco, which began as a project at New York University’s Media Research Lab, had roughly six employees and had not yet turned its technology into a commercial product. It is not clear what the terms of the deal were.