US chipmaker to buy Global Locate Inc for 146 mn dlr
Broadcom Corp., the U.S. chipmaker that won a patent dispute against rival Qualcomm Inc., agreed to buy Global Locate Inc. for $146 million, gaining semiconductors that can be used as tracking devices.
By Agencies |
Dallas: Broadcom Corp., the U.S. chipmaker that won a patent dispute against rival Qualcomm Inc., agreed to buy Global Locate Inc. for $146 million, gaining semiconductors that can be used as tracking devices.
Global Locate's chips use the satellite-based global positioning system, and are used in navigational devices for cars and mobile phones, Broadcom said on Tuesday in a statement. Broadcom also will pay Global Locate's former owners up to $80 million if the transaction meets undisclosed goals.
Broadcom aims to combine Global Locate's technology with its own for phones to win more business from gadget makers. The company also will use Global Locate's chips to meet government regulations for emergency phone calls, since they can pinpoint a caller's location.
The shares of Irvine, California-based Broadcom rose 17 cents to $30.74 yesterday in Nasdaq Stock Market trading. They had dropped 4.9 percent this year, before today.
Closely held Global Locate, founded in 1999, is based in San Jose, California. Broadcom may record an unspecified one- time cost for research and development expenses when the transaction closes, probably by the third quarter, according to the statement.
Last week the U.S. International Trade Commission ruled that chips made by Qualcomm Inc., the world's second-biggest maker of semiconductors for mobile phones, infringed a patent owned by Broadcom. The agency banned San Diego-based Qualcomm's chips from new models, a ruling the company plans to appeal.
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