Amazon has reportedly purchased Touchco, a small startup focusing on multitouch technology, that could be used in developing a new line of Kindle e-readers.

Amazon plans to fold Touchco's technology and staff into its Kindle hardware division, the New York Times reported, quoting a person briefed on the deal. Amazon on Thursday declined to discuss the report.

Touchco's panels are completely transparent, can accept simultaneous input from an unlimited number of touch points, and can distinguish between varying levels of pressure sensitivity.

Touchco's multi-touch technology responds to different levels of pressure, as opposed to requiring contact with skin like Apple's iPhone.

According to the Times, Touchco's interpolating force-sensitive resistance technology supports unlimited simultaneous touch inputs, the Times said.

In addition, the technology is made for color displays, is low power, and is inexpensive, costing as little as $10 a square foot.