San Diego-based Qualcomm Inc. announced Aug. 11 that it will acquire Flarion Technologies for $600 million in cash and stock.
In addition to the $600 million for the initial acquisition, Qualcomm may pay $205 million in the form of cash and stocks 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 a history of being a leading developer of Code Division Multiple Access and other advanced wireless technologies, Flarion Technologies has been a leading developer of Orthogonal Frequency Division Multiplex Access and 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, chief executive officer for Qualcomm. “The combination of Flarion and Qualcomm’s engineering resources greatly strengthens our position as a continued technology innovator and leader in the wireless industry.”
Ray Dolan, chairman and chief executive officer for Flarion, said his company, which is headquarted in New Jersey, is equally pleased to be joining Qualcomm.
“This combination with Qualcomm is ideal for Flarion as Qualcomm has a proven history of bringing the most advanced technologies to market for large-scale deployments,” Dolan said. “The Flarion team is excited about becoming part of Qualcomm and working hand in hand to bring the best solutions to the industry.”
The acquisition is expected to be completed later this year when regulatory approval and other typical closing requirements are met.
Qualcomm trades on the Nasdaq under the symbol QCOM.
Jessica Long
