Amazon Web Services announced Thursday it is acquiring video encoding company Elemental Technologies, based in Portland.

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Amazon Web Services (AWS), the fast-growing cloud-computing unit of the online-retail giant, announced Thursday it is acquiring video-encoding company Elemental Technologies, based in Portland.

Elemental, founded in 2006, runs back end software that reformats videos aimed for outlets such as cable and satellite and allows them to be played across a large variety of screens and devices, including desktop computers and smartphones.

AWS plans to use Elemental’s technology and expertise to allow media company customers to easily deliver video over the Internet, Amazon.com said in a release Thursday.

Terms were not disclosed, but Bloomberg News, citing a person with knowledge of the deal, reported that the price was more than $500 million. Amazon representatives did not immediately return a request for comment on the price, The deal is expected to close in the fourth quarter.

AWS is one of Amazon’s solidly growing divisions, heralded in the media and among investors recently after the company disclosed that the business is profitable and expanding. Amazon said in a release that Elemental’s technology is useful as media companies “increasingly move to Internet-based delivery.”

“Together, we’ll collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models as they continue to innovate their services for viewers,” Andy Jassy, senior vice president of AWS, said in a statement Thursday.

Elemental will continue doing business under its brand, and work on integrating further with AWS. The company has a number of well-known clients, including divisions of BBC, CNN and ESPN.

Amazon rarely makes large acquisitions, the most recent being the $970 million purchase last year of video-game streaming company Twitch. Elemental is one of its largest acquisitions to date, if the $500 million price tag is true.

Elemental was one of Portland’s most successful startups in recent years, thought to be headed for an IPO. The Portland company has more than 200 employees and last year brought in $49 million in revenue, according to the Portland Business Journal.

Elemental raised $44 million from investors including Voyager Capital, Telstra Ventures and the Oregon Angel Fund.