65.5 F
San Diego
Monday, Mar 18, 2024
-Advertisement-

Qualcomm to Buy Flarion, Elata

San Diego-based Qualcomm Inc. announced the planned acquisition of two companies this month for a combined price of some $657 million.

The bulk of the purchase price is for Flarion Technologies, which Qualcomm announced that it will acquire Aug. 11 for $600 million in cash and stock. On Aug. 17, Qualcomm announced it will acquire Elata, which is based in the United Kingdom, for $57 million in cash.

In addition to the $600 million Qualcomm will pay for the initial acquisition of New Jersey-based Flarion, an additional payment of $205 million in the form of cash and stocks may be made if Flarion satisfies certain anticipated milestones in the next eight years. Approximately $35 million of the $205 million payment would be in the form of stocks, leaving about $170 million to be paid in cash.

While Qualcomm has been developing Code Division Multiple Access and other advanced wireless technologies, Flarion Technologies has been developing Orthogonal Frequency Division Multiplex Access and is the inventor of Flash-OFDM technology for mobile broadband Internet protocol services.

“With this acquisition, Qualcomm will be in a stronger position to support advanced development in both CDMA and OFDMA technologies,” said Paul Jacobs, the chief executive officer for Qualcomm.

Ray Dolan, the chairman and chief executive officer for Flarion, said his company is equally pleased to be joining Qualcomm.

With the Elata acquisition, Qualcomm is preparing to expand its European business by merging U.S. technologies with Elata’s flagship mobile content delivery software.

“The benefits of this acquisition are threefold,” said Peggy Johnson, the president of Qualcomm Internet Services. “(It supports) the overall delivery of content while maintaining backwards compatibility with operators’ current devices through open standards. (It) strengthens our commitment to meeting the needs of operators worldwide (and brings) new value-added services to market without additional hardware requirements.”

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-