GPS World

Tag: Broadcom

  • The Business: SiRF, CSR to Merge; Kanwar Chadha’s Perspective

    » MASS MARKET OEM

    SiRF, CSR to Merge; Kanwar Chadha’s Perspective

    SiRF Technology Holdings, Inc., of San Jose, California, and CSR plc, formerly Cambridge Silicon Radio, headquartered in Cambridge, United Kingdom, will merge in a stock-for-stock transaction to create a new company, which will automatically assume a competitive, leading position in global connectivity and location markets. The companies expect the transaction to close in the second quarter of 2009.

    “Financially, strategically, and commercially, this is a compelling transaction,” said Joep van Beurden, CEO of CSR — and analysts would almost universally agree. SiRF has been under the financial microscope since troubles surfaced in Q1 2008, and speculation about an acquisition had been rife.

    Further, SiRF has been locked in a patent battle with Broadcom, the latter involved through its July 2007 acquisition of Global Locate.

    CSR has made its mark in the Bluetooth connectivity sector, combining multiple connectivity technologies, while SiRF has long pioneered GPS location with multifunction system-on-chip (SoC) location platforms for consumer handhelds and cell phones. In January 2007, CSR purchased GNSS software receiver innovator NordNav.

    Chadha Says. “From a strategy viewpoint,” SiRF founder and vice president of marketing Kanwar Chadha told GPS World, “multi-function radios is something we have been talking about for two years. Market opportunities became much larger in the last six months, with Nokia driving loction into every mobile phone.

    “When you see a market opportunity in front of you, it’s better to combine best-of-class than to build a solution from scratch.

    “We have a strong customer base in automotive and PNDs, while we are expanding into wireless. CSR is compelementary: strong now in wireless, and so on.

    “In easy times, you can build your own solution. In tough times, trying to build an additional platform of technology, if we start from scratch, that may take four to five years to prove out; that’s very difficult. Both of us tried to do that, by the way. They need GPS, we need Bluetooth.

    “Now, our multimode AGPS with their EGPS, and the economies of scale enjoyed by a now close to a billion-dollar company, we feel very good about that. Bluetooth in hands-free mobile phones, that has a 50 percent penetration in handsets. It is much deeper than GPS today, although GPS is catching up.

    “Their [CSR’s] world is very mobile-phone centric. We are more location-platform centric, more diverse in our view. It will be very interesting. GPS-Bluetooth-FM: for our customers, the handset vendors, this is their most requested combination. There are two ways to integrate these function: integrate GPS with a modem, as Qualcomm does, or integrate it into  what CSR calls a connectivity center, of short-range wireless technologies.”

    Lines Drawn. A significant market battle continues between the big four in the mass market OEM GPS chip sector: Broadcom, Qualcomm, CSR, and TI, formerly Texas Instruments — with Sony and Panasonic quietly going about their own business, making GPS chips for brand devices, but in a position to supply others, if they are not doing so already. The new ST-NXP Wireless joint venture with Ericsson (see story page 18) will also play in that arena.

    Chadha does not expect to see competition from manufacturers in Taiwan and China, at least not immediately. “These are complex radio technologies, not simple digital technologies.”

    Brand. “The SiRF brand won’t go away, it’s very strong,” he concluded. “We’ll continue to build on it. the location platform will be our recognizable art of the new company , and of course we’ll continue applying our expertise there.”

    On a pro forma basis, the two companies combined would have had 2008 sales of approximately $927 million. The combination will create the single largest pure-play provider of integrated connectivity and location platforms and will be one of the top 10 fabless semiconductor companies in the world, according to a joint statement. Customers include four of the top five handset makers, the top five PND makers, the top two auto-telematics suppliers, and other leading electronics providers. CSR and SiRF will have design and customer-support centers around the world.

    On closing of the transaction, SiRF stockholders are expected to own 27% and CSR shareholders are expected to own 73% of the combined company. CSR’s board will add SiRF interim CEO Dado Banatao and Chadha. The combined company, with CSR’s Van Beurden as CEO, will be based in Cambridge, and San Jose will serve as U.S. headquarters.

    » TELECOMMUNICATIONS

    Ericsson and STMicro Complete Mobile Merger

    STMicroelectronics and Ericsson have closed their agreement merging Ericsson Mobile Platforms and ST-NXP Wireless into a 50/50 joint venture. The deal was completed on the terms originally announced on August 20, 2008.

    The new company is designed for long-term stability and to become an industry leader in product research, as well as design, development, and the creation of mobile platforms and wireless semiconductors. The joint venture begins as a major supplier to four of the industry’s top five handset manufacturers, who together represent about 80 percent of global handset shipments, as well as to other industry leaders.

    Ericsson contributed $1.1 billion net to the joint venture, out of which $0.7 billion was paid  to STMicro. Before the closing of the transaction, STMicro exercised its option to buy out NXP’s 20 percent ownership stake of ST-NXP Wireless.

    Alain Dutheil, CEO of ST-NXP Wireless and chief operating officer of STMicroelectronics, will lead the joint venture as president and chief executive officer.Employing about 8,000 people — roughly 3,000 from Ericsson and 5,000 from STMicro — the new wireless technologies company is headquartered in Geneva, Switzerland.

    » MILITARY & GOVERNMENT

    Honeywell T-Hawk Micro Vehicle Heads for U.K.

    Honeywell received an order for six T-Hawk micro air vehicle (MAV) systems from the U.S. Navy, the contracting agency for the U.K. Ministry of Defence (MOD) for the T-Hawk MAV system procurement, in a contract valued at USD $5.7 million.

    The new U.K. order comes in addition to the Navy’s existing T-Hawk contract with Honeywell, announced in November 2008, for 90 systems. The T-Hawk MAV will be used by joint force EOD (Explosive Ordinance Device) units in Iraq and Afghanistan, among other locations.

    The circular vehicle, weighing 17 pounds and 14 inches in diameter, can fly down to inspect hazardous areas for threats without exposing warfighters to enemy fire. The T-Hawk MAV can take off and land vertically and fly more than 40 minutes, at more than 40 knots of airspeed, operating at altitudes of more than 10,000 feet.

    An eye-in-the-sky for battlefield surveillance, the Honeywell MAV carries video cameras to relay real-time data and a GPS device. It identifies improvised explosive devices (IEDs) and can inspect suspected bomb sites in areas inaccessible by ground robots.

    » MASS MARKET OEM

    Epson, Infineon Develop Tiny Single-Chip Receiver

    Seiko Epson Corporation of Tokyo, Japan, and Infineon Technologies AG of Neubiberg, Germany, have developed a GPS single-chip design, the XPOSYS, which is optimized for mobile devices for the consumer market — especially cellular phones with navigation features.

    Compared to existing solutions in the market, the XPOSYS, which is manufactured in a 65-nanometer process technology, provides increased performance and new levels of user experience, the companies said.

    Sensitivity has been increased from -160 dBm to -165 dBm, allowing for pinpoint positional accuracy when indoors or in urban canyons. Power consumption has been reduced by 50 percent, increasing the battery life of products in which it is included. The footprint has been reduced to 2.8 x 2.9 millimeters, which the companies claim is 25 percent less than the smallest GPS chip available elsewhere.

    u-blox Launches Cards for Mobile Computers

    A GPS PCI Express Mini card from u-blox (Thalwil, Switzerland) enables next-generation laptop, netbook, mobile internet device and Ultra Mobile PC OEMs to provide GPS and location-based services (LBS) such as personal navigation, services and people finders, and geo-tagging.

    “With the explosive potential of next-generation GPS applications and services for mobile PCs, it is the right time to introduce a robust PCI Express mini card supporting location-based services,” said Thomas Nigg, Vice President Product Marketing at u-blox.Sales of mobile PCs with integrated GPS are projected to grow from 3 million units in 2007 to 45 million units in 2011, according to u-blox.

    Qualcomm Launches Chipset for Low-Cost Smartphones

    Qualcomm, Inc., has launched the Mobile Station Modem MSM7227 chipset designed to enable high-performance, sub-$150 smartphones. The MSM7227 chipset features integrated Bluetooth 2.1 and GPS, a 600-MHz applications processor with a floating point unit, 320-MHz application DSP, 400-MHz modem processor, hardware-accelerated 3D graphics, 8-megapixel camera, and 30-fps WVGA video encode and decode and display support.

    The MSM7227 chipset is designed to provide advanced processing and multimedia while using HSDPA/HSUPA for broadband data speeds over 3G networks. It also can support all leading mobile operating systems including Android, Symbian S60, Windows Mobile and BREW Mobile Platform, according to the company.

    The MSM7227 chipset has a 12 x 12 millimeter footprint and lower power consumption than previous MSM7xxx-series chips. It is sampling now, and commercial smartphones based on the chip are expected to launch later this year.

    Broadcom Combos GPS, Bluetooth, and FM Radio System-on-Chip

    Broadcom Corporation of Irvine, California, has released BCM2075, a new, integrated GPS, Bluetooth, and FM radio in a single-chip design, targeting location-based services (LBS) applications. The processor reduces the host and application processing required by competing combo solutions, enabling greater adoption in mass market handsets, according to the company.

    The BCM2075 integrates four radios (Bluetooth, GPS, FM receive, and FM transmit), enabling the radios to operate simultaneously and with minimal interference.

    The company expects the chip to drive key handset applications that network operators and consumers are looking to adopt, furthering the cause of LBS and advanced multimedia available on mid-range mobile phones. The GPS core uses a host-based integration architecture that splits the processing duties between the BCM2075 and the host CPU system and provides low GPS power, delivering a reported 50 percent better power performance compared to other chips, the company said. Broadcom’s GPS technology, stemming largely from its July 2007 purchase of Global Locate, enables a fast time-to-first-fix and provides integrated support for other positioning technologies, such as Wi-Fi positioning.

     

     

  • SiRF and CSR to Merge

    SiRF Technology Holdings, Inc., based in San Jose, California, and CSR plc, formerly Cambridge Silicon Radio, headquartered in Cambridge, UK, will merge in a stock-for-stock transaction to create a new company, which will automatically assume a competitive/leading position in global connectivity and location markets. The companies expect the transaction to close in the second quarter of 2009.

    “Financially, strategically and commercially, this is a compelling transaction,” stated Joep van Beurden, CEO of CSR — and analysts would almost universally agree. SiRF has been under the financial microscope since troubles surfaced in Q1 2008, and speculation about an acquisition had been rife.

    Further, SiRF has been locked in a patent battle with Broadcom, the latter involved through its July 2007 acquisition of Global Locate.

    CSR has made its mark in the Bluetooth connectivity sector, combining multiple connectivity technologies, while SiRF has long pioneered GPS location with multifunction system-on-chip (SoC) location platforms for consumer handhelds and cell phones. In January 2007, CSR purchased GNSS software receiver innovator NordNav.

    For the moment, Qualcomm CDMA sits on the sidelines, but a significant and long-going market battle continues between (now) the big three in the mass market OEM GPS chip sector: Broadcom, Qualcomm, CSR — with Sony and Panasonic also quietly going about their business, primarily making GPS chips for their own brand devices, but certainly in a position to supply others, if they are not doing so already.

    Based on CSR’s and SiRF’s results for fiscal year 2008, on a pro forma basis, the combined companies would have had sales of approximately $927 million. The combination will create the single largest pure play provider of integrated connectivity and location platforms and will be one of the top 10 fabless semiconductor companies in the world, according to a joint statement by the two. Customers of the combined company include four of the top five handset manufacturers, the top five personal navigation device makers, the top two auto-telematics suppliers, and other leading auto and consumer electronics providers. CSR and SiRF will have design and customer support centers around the world.

    Under the terms of the agreement, SiRF stockholders will receive 0.741 of a CSR share for each share of SiRF common stock they own. Based on the closing stock price for CSR on February 9, this consideration would be equivalent to $2.06 of CSR stock for each SiRF share, representing total consideration of $136 million. This represents a premium to SiRF stockholders of approximately 91% over SiRF’s closing stock price on February 9. On closing of the transaction, SiRF stockholders are expected to own approximately 27% and CSR shareholders are expected to own approximately 73% of the combined company. The transaction is expected to be tax-free for SiRF stockholders.

    SiRF, listed on the NASDAQ exchange, generated revenues of $232 million in 2008, and had gross assets of $195 million as of December 27, 2008.

    CSR is listed on the London Stock Exchange. CSR’s customers include industry leaders such as Audi, Ford, LG, Motorola, NEC, Nokia, Panasonic, RIM, Samsung, Sharp, Sony, TomTo,m and Toshiba. CSR has its headquarters and offices in Cambridge, UK, and offices in Japan, Korea, Taiwan, China, India, France, Denmark, Sweden, and both Dallas and Detroit in the USA.

    According to the companies, the transaction proffers the following benefits to both the companies themselves and their stockholders:

    Combined Product Roadmap for Next-Generation Chips. The combined company will have significant R&D resources to deliver a broader portfolio of location and connectivity solutions to customers. R&D efforts will continue to support each company’s existing product lines and will also be focused on the delivery of additional multifunction radio chips, which combine CSR’s Bluetooth and other connectivity capabilities with SiRF’s GPS and GNSS technologies.

    Growing Market Opportunities and Revenue Synergies. The combined company will benefit from significantly increased scale to meet the demand for both connectivity and location services in a broad range of products spanning mobile phones, automobiles, personal computers, mobile Internet devices, digital cameras, mobile gaming, and other consumer electronics products. The companies expect to achieve significant additional revenue synergies beginning in 2010 and beyond through a combination of cross-selling opportunities, deeper penetration of existing customers, new product offerings combining complementary technologies, and access to new markets.

    Financial Synergies. The companies expect that annual cost synergies of at least $35 million in savings from gross margin improvements and reduced R&D, sales and marketing, and overhead costs can be achieved through steps that can be implemented within 60 days post completion of this transaction.

    Financial Strength and Flexibility. The combined company is expected to have a strong balance sheet and cash position. At the end of fiscal year 2008, on a pro forma basis, the combined company had $378 million in cash and no bank debt.

    Following the close of the transaction, CSR’s board of directors will be expanded to add two members of the SiRF board, interim CEO Dado Banatao and co-founder and VP of marketing Kanwar Chadha. Van Beurden will lead the combined company as CEO with the remaining leadership to be comprised of executives from both SiRF and CSR. The combined company will be headquartered in Cambridge (United Kingdom), and SiRF’s San Jose, California, headquarters will become the headquarters for CSR’s U.S. operations.

    The transaction is subject to regulatory approvals and the approval of SiRF and CSR shareholders.

    More information can be found at www.csr.com.

  • ITC Upholds Broadcom Claims, Issues Order Against SiRF

    The U.S. International Trade Commission (ITC) has issued an exclusion order against certain SiRF GPS chips and products containing those chips imported into the United States, as well as cease-and-desist orders against SiRF and four specific SiRF customers.

    This comes after the commission affirmed an ITC administrative law judge’s initial determination that SiRF infringes on three additional GPS patents held by Global Locate Inc., a wholly owned subsidiary of Broadcom. This latest ruling brings the total number of Global Locate GPS-related patents that SiRF has been found to infringe up to six.

    In 2008, an ITC administrative law judge found that SiRF infringed on all six patents asserted by Global Locate/Broadcom and subsequently recommended an import ban within in the United States; SiRF appealed the finding. The full ITC Commission subsequently upheld the administrative law judge’s finding on three patents, while holding off on a final determination on the other three pending further review. On Thursday, January 15, the commission issued both its Final Determination on those patent issues and orders regarding the appropriate form of remedy.

    “We are optimistic that the ITC orders will become effective after a 60-day statutory review period so that U.S. Customs may begin enforcement and prevent any further patent infringement,” said David Rosmann, Broadcom’s vice president for intellectual property litigation.

    The six patents at the center of the dispute are United States patents 6,417,801; 6,937,187; 6,606,346; 7,158,080; 6,704,651; and 6,651,000 — relating to extended ephemeris assistance, calculating time in GPS receivers, enhancing sensitivity in assisted GPS systems, and implementing hardware structures for parallel correlation, according to Broadcom. These patents involve several SiRF products, including SiRFstarIII and SiRFInstant devices.

    For its part, however, SiRF said that the impact of the ITC’s decision is minimal, as the products involved are legacy products. It also hinted that it could still file an appeal in federal court.

    “We are pleased that the commission followed the Federal Circuit’s Kyocera ruling, which significantly limits the impact to our customer base,” said Kanwar Chadha, founder of SiRF in a statement. “While disappointed with the commission’s ruling as it relates to its patent infringement findings regarding SiRF’s earlier products, we continue to work closely with the named customers to conform with the commission’s ruling and enable them to maintain uninterrupted product delivery to market.”

    Chadha was referring to a federal circuit court’s October 14, 2008, decision that ITC limited exclusion orders only affect parties named in an investigation involving Kyocera. Other than the four named customers in the investigation, all other SiRF customers are not affected, the company said. Those four customers have not been named publicly.

    SiRF further noted that following the 60-day presidential review period it has the option to appeal the case to the U.S. Court of Appeals for the Federal Circuit, but did not specifically say it would pursue this option. Broadcom and SiRF are already duking it out in federal district court over patent disputes; that trial is scheduled to begin in November 2010.

  • ITC to Review SiRF/Broadcom Patent Imbroglio

    The U.S. International Trade Commission (ITC) has said it will review the determination of one of its administrative law judges that previously found that SiRF Technology infringed on patents held by Broadcom subsidiary Global Locate.

    The ITC judge ruled in August that certain SiRF products, including SiRFstarIII and SiRFInstant GPS architectures, infringed upon six Global Locate/Broadcom patents; the judge later recommended to the ITC that it issue a ban on the import of related SiRF chips into the United States.

    Both SiRF and ITC staff filed appeals independently of one another seeking a review of the ruling. Now, the ITC has said it will review claims on three out of the six patents, according to SiRF.

    The commission has requested written submissions from the parties involved to address the form of remedy, if any, that should be ordered. According to the notice, if the commission contemplates some form of remedy, it must consider the effects of that remedy upon public interest, SiRF noted.

    The final ITC ruling, slated for December 2008, is further subject to a 60-day presidential review period and can then be appealed to the Federal Circuit Court of Appeals.

    SiRF, Qualcomm Play Nice

    Apparently SiRF and Qualcomm want to avoid the legal snafu in which SiRF and Broadcom are currently embroiled. SiRF also announced that it and Qualcomm have signed a mutual Patent Non-Assertion Agreement covering each party’s patent portfolio.

    “We believe that this agreement between leading innovators of A-GPS enabled location technology will help expand the market for location-enabled products, services and content, while enabling each of us to compete in the marketplace based on product merits,” said Kanwar Chadha, SiRFs founder and vice president of marketing.

    It’s been a busy week for SiRF; on Wednesday it took the wraps off its SiRFlinkIII, a single chip that combines a GPS RF front end with a Bluetooth 2.1 + EDR controller.

  • ITC Upholds Ruling in SiRF/Broadcom Patent Dispute

    The U.S. International Trade Commission (ITC) has denied the request of SiRF Technology to review its initial determination that found that Broadcom subsidiary Global Locate Inc. didn’t infringe two SiRF GPS patents.

    ITC Administrative Law Judge Paul Luckern had previously ruled that two of SiRF’s GPS patents were not infringed by Global Locate and that the asserted claims of one of the patents were invalid, following a six-day trial last March, according to Broadcom. SiRF had already dismissed two additional patents from the case before trial.

    This ITC case is separate from a case in which an ITC judge ruled earlier this month that certain SiRF Technology products, including SiRFstarIII chipsets, infringe six patents related to improving GPS processing and sensitivity held by Global Locate.

    Broadcom and SiRF have been battling on multiple fronts over patent infringement claims in federal court, the ITC, and before the U.S. Patent and Trademark Office. The August 8 ITC ruling against SiRF caused the company’s stock to take a pounding on Wall Street.

  • ITC Says SiRF Infringes Six Broadcom Patents

    A U.S. International Trade Commission (ITC) judge has ruled that certain SiRF Technology products infringe six patents related to improving GPS processing and sensitivity that are held by Global Locate Inc., a wholly owned subsidiary of Broadcom.

    The infringement findings cover a range of SiRF products, including those incorporating the SiRFstarIII and SiRFInstant GPS architectures, according to Broadcom.

    The ruling came Friday, August 8, just a day after SiRF said it had asked the U.S. Patent and Trademark Office reexamine four patents that are the subject of an infringement suit Broadcom has brought against SiRF in federal court. Furthermore, In June the ITC rejected claims by SiRF Technology that Global Locate infringed upon two of its patents, and also found that SiRF’s asserted claims on one of the patents at issue were invalid.

    The ruling Friday followed a trial earlier this year. Broadcom said it expects a final determination by the full six-person commission by early December.

    The six patents that SiRF was found to infringe are U.S. patents 6,417,801; 6,937,187; 6,606,346; 7,158,080; 6,704,651; 6,651,000 — relating to extended ephemeris assistance, calculating time in GPS receivers, enhancing sensitivity in assisted GPS systems, and implementing hardware structures for parallel correlation, according to Broadcom.

  • SiRF Requests Reexamination of Broadcom Patent Ruling

    SiRF Technology Holdings, Inc. of San Jose, California, has completed filing with the U.S. Patent and Trademark Office official requests for reexamination of each of the four patents that Broadcom recently asserted against SiRF in the Santa Ana, California, federal district court.

    SiRF seeks review and invalidation of all four of the Broadcom patents named in the lawsuit, through its requests for ex-parte reexamination and in view of what it terms “substantial new questions of patentability raised by prior art not previously considered by the Patent Office,” according to the company.

    SiRF also intends to seek a stay of the federal district court case.

    SiRF and Broadcom have been engaged in an ongoing legal battle over patents held by their respective companies, both claiming patent infringement. In late June, SiRF Technology petitioned the International Trade Commission (ITC) to review part of a ruling that found that Broadcom didn’t infringe upon two of its patents as the company alleged.

    A ruling in Broadcom’s six claims of patent infringement against SiRF before the ITC is expected any day. The trial took place in April.

  • SiRF Appeals ITC Ruling on Broadcom Dispute

    SiRF Technology has petitioned the International Trade Commission (ITC) to review part of a ruling earlier this month that found that Broadcom didn’t infringe upon two of its patents as the company alleged.

    ITC Administrative Law Judge Paul Luckern issued his initial determination in the suit originally filed by SiRF against Global Locate on June 13 following a six-day trial in March in Washington, D.C. Broadcom acquired Global Locate in July 2007. The judge subsequently found that Broadcom didn’t infringe on SiRF’s intellectual property, and found one of the two patents in question to be invalid.

    SiRF said it has petitioned the ITC to review those aspects of the initial determination that found that the valid patent was not infringed by Broadcom.

    The intellectual property dispute goes back to 2006, when SiRF also took Global Locate to task in federal district court; it in turn counter-sued. Those suits were stayed pending the ITC ruling.

    Broadcom also has its own claims against SiRF before the ITC, having filed six claims of patent infringement; that trial took place in April of 2008. An initial determination in that case, heard before Administrative Law Judge Carl Charneski, should come on Aug. 8, 2008, according to the company. Broadcom also filed a lawsuit in May 2008 in federal district court, claiming infringement of four patents.

  • ITC Rules Against SiRF, for Broadcom

    Broadcom Corp. says the U.S. International Trade Commission (ITC) rejected claims by GPS chip maker SiRF Technology, which alleged that Global Locate infringed upon two of its patents. Furthermore, the ITC also found that SiRF’s asserted claims on one of the patents at issue were invalid, according to Broadcom.

    Broadcom acquired Global Locate in July 2007; the patent dispute stems back at least to 2006, when SiRF also took Global Locate to task in federal district court; it in turn counter-sued. Those suits were stayed pending the ITC ruling. ITC Administrative Law Judge Paul Luckern issued his initial determination Friday, June 13, following a six-day trial last March in Washington, D.C.

    Broadcom also has its own claims against SiRF before the ITC, having filed six claims of patent infringement; that trial took place in April of 2008. An initial determination in that case, heard before Administrative Law Judge Carl Charneski, should come on August 8, 2008, according to the company.

    Broadcom also filed a lawsuit in May 2008 in federal district court, claiming infringement of four patents.

  • Broadcom Completes Acquisition of Global Locate

    Telecom chip maker Broadcom Corp. said Thursday evening that it had completed its acquisition of Global Locate Inc., a privately held provider of GPS and assisted-GPS chips and related software.

    The acquisition is a strategic one for Broadcom, which specializes in wired and wireless semiconductors, and is known for its RF technology. The company notes that consumer interest in GPS applications is driving the market for GPS silicon; the market is expected to top $1 billion annually by 2012, Broadcom says, citing market research firm Forward Concepts.

    Broadcom envisions combining Global Locate’s GPS technology with its own Bluetooth, Wi-Fi and cellular technologies, and supplying that combination to mobile handset makers.

    Broadcom first announced plans to acquire Global Locate in June. Broadcom, which saw nearly $3.7 billion in revenues last year, paid approximately $143 million in cash for all outstanding shares of capital stock in Global Locate. Under the terms of the deal a portion of that payable to Global Locate’s stockholders was put in escrow; up to $80 million in cash will be reserved for future payment to these stockholders, provided certain future performance goals are met.

    In connection with the transaction, certain former stockholders of Global Locate are purchasing $3 million of Broadcom’s shares at Thursday’s closing price on the Nasdaq Global Select Market. Broadcom may record a one-time charge for in-process R&D expenses related to the acquisition in its current fiscal quarter, which ends Sept. 30. The amount of that charge, if any, has not yet been determined.

  • Broadcom Gets Into the GPS Chip Biz

    Communications chip maker Broadcom Corp. today said it was acquiring GPS chip maker Global Locate Inc., a privately-held provider of GPS and assisted GPS (A-GPS) chips and software.

    Broadcom expects to pay approximately $146 million in cash for all outstanding shares of Global Locate when the deal closes. It anticipates closing on the acquisition during Q3, which ends Sept. 30. A strategic move that will likely prove important in the near future for Broadcom, it’s not a stretch for the company financially; its 2006 revenues were $3.67 billion.

    Broadcom, which specializes in wired and wireless technology and is noted for its RF tech, cited the growth in GPS applications, particularly in mobile devices, as the principal driver behind the acquisition. It noted that Global Locate silicon is found in not only mobile phones but also in personal navigation devices (PNDs) from TomTom.

    “With the acquisition of Global Locate, Broadcom will be the only semiconductor supplier in the world with top-tier customers in Bluetooth, Wi-Fi, FM radio and GPS, four of the key wireless technologies now being added to next generation mobile phones,” stated Robert A. Rango, vice president and general manager of Broadcom’s Wireless Connectivity Group. “We are also pleased to add Global Locate’s strong patent portfolio of over 175 issued and pending U.S. and foreign patents to our already robust patent portfolio.”

    Broadcom holds some 2,000 U.S. and 800 foreign patents with more than 6,000 additional pending patent applications, according to the company.

    Global Locate President Scott Pomerantz said he envisions a new generation of GPS chips coming from the merger—and the eventual appearance of Broadcom wireless technology in PNDs. “The combination of Global Locate’s navigation expertise with Broadcom’s well-known leadership in CMOS RF technology will enable Broadcom to develop a new generation of standalone GPS chips as well as GPS chips that incorporate other wireless standards, accelerating the adoption of GPS into all sorts of consumer devices,” he stated.

    Global Locate has focused on GPS chip and navigation technology since it was founded in 1999. The company is currently producing its third generation of GPS chips and has developed a worldwide GPS reference network that provides assistance data to its A-GPS-equipped chips via cellular data channels (GPRS or 3G), boosting performance and reducing the time required to determine a location by up to a factor of 100, according to the company.