Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies and data solutions, today announced that it will be making acquisitions to complement its core wireless technology offerings. Qualcomm will acquire for cash WLAN technology provider Airgo Networks Inc. and the majority of RF Micro Devices' (RFMD's) Bluetooth® assets. The acquisitions will enhance Qualcomm's ability to deliver industry-leading, complete semiconductor solutions that will enable its device manufacturing partners to more quickly and easily offer a wide range of compelling wireless devices.
“Qualcomm's business strategy has always been integration, enhancing performance and reducing time to market by offering complete solutions,” said Dr. Sanjay K. Jha, president of Qualcomm CDMA Technologies. “With these two acquisitions, we will continue to extend our leadership in mobile broadband and will be offering our partners comprehensive chipsets with seamlessly integrated features.”
“As the attach rate for Bluetooth and WLAN features in mobile handsets is poised to grow past the critical tipping point, these acquisitions become very timely,” said Chris Ambrosio, director of wireless device strategies for Strategy Analytics. “With Qualcomm now having the technologies of Airgo and RFMD's Bluetooth business in-house, manufacturers will have access to more integrated solutions - chipsets that deliver expanded, seamless connectivity with enhanced performance and space savings.”
Palo Alto, Calif.-based Airgo possesses intellectual property assets and resources in WLAN technology and has provided WLAN products to both manufacturers of access points and laptop computers. In addition to supporting Airgo's existing business, Qualcomm will be integrating their 802.11a/b/g and 802.11n technology into select Mobile Station Modem™ (MSM™) chipsets. The Company will also use this technology for chipsets on the new Snapdragon™ platform, which is designed to offer ubiquitous mobile broadband connectivity.
“Airgo has an extensive history of delivering advanced wireless LAN solutions that have revolutionized our industry segment, and we are pleased to become part of the company we believe is the global leader in wireless technology and chipsets,” said Greg Raleigh, president & chief executive officer of Airgo Networks. “This acquisition enables integrated products with wireless LAN and wireless WAN capabilities to deliver a seamless-connectivity experience for users.”
Under the agreement with RFMD, Qualcomm will acquire the majority of North Carolina-based RFMD's Bluetooth assets, specifically those based in San Diego. Qualcomm will be integrating the Bluetooth Enhanced Data Rate (EDR) technology into MSM reference designs to offer its device manufacturing customers a more complete solution. RFMD's San Diego-based team currently designs technology for both the mobile handset and headset markets.
“RFMD hopes to become a broader development partner to Qualcomm's entire product portfolio for complementary products such as power amplifiers and front-end modules,” said Bob Bruggeworth, president and chief executive officer of RFMD. “RFMD is pleased that Qualcomm sees the value of our long-term roadmaps for front-end solutions. The sale of these assets is part of an ongoing relationship with Qualcomm that we expect will continue to strengthen as we move forward to become the leading provider of high-performance radio systems and solutions to the wireless industry.”
Qualcomm estimates the combined effect of these acquisitions on its pro forma earnings per share to be dilutive by approximately $0.04 in its fiscal year ending September 2007, and modestly accretive in FY08. The acquisitions are expected to close by the end of December 2006.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2006 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the ability to gain any necessary approvals for the proposed acquisitions, the successful completion of the acquisitions, the ability to achieve expected growth, savings and benefits of the acquisitions, the potential disruption in business or relationships with customers, vendors, partners and employees as a result of the proposed acquisitions, the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 25, 2006.