SANTA CLARA, Calif., Dec. 13 /PRNewswire-FirstCall/ -- Atheros
Communications, Inc. (Nasdaq: ATHR), a leading developer of advanced
wireless solutions, today announced that it has signed a definitive
agreement to acquire the assets and certain liabilities of u-Nav
Microelectronics, a privately held fabless semiconductor company
specializing in global positioning system (GPS) chipsets and software that
enable mobile location-based products and services. The acquisition of
u-Nav immediately expands Atheros' growing product portfolio in mobile
wireless communications which also includes mobile wireless LAN (WLAN),
Bluetooth and PHS.
With one of the world's most integrated designs for GPS, u-Nav's
technology enables mobile device manufacturers to quickly and easily
develop embedded GPS applications for the wireless handset, personal
navigation device, personal computing, consumer and mobile telemetry
markets. u-Nav's flagship product, the uN3010, is a single-chip GPS
receiver that integrates the company's CMOS high-performance RFIC core with
its third-generation baseband IC core. The uN3010 supports high-sensitivity
GPS signal acquisition that exceeds industry standards. u-Nav's product
portfolio includes single-die solutions, several baseband chips and RFICs,
and complete GPS system software solutions providing signal acquisition,
tracking, data extraction and GPS navigation.
The addition of u-Nav's shipping GPS products and technologies to
Atheros' Radio-on-Chip for Mobile (ROCm(TM)) portfolio enables the company
to deliver high-performance, cost-efficient combinations of mobile
solutions featuring the industry's leading WLAN, Bluetooth and GPS
technologies. By aggregating these complimentary wireless technologies into
complete, single-source solutions, Atheros will deliver greater value to
its existing base of world-class customers, expand into new market segments
and offer a greater share of the total bill of materials for mobile
devices. Additionally, Atheros will provide optimized wireless coexistence,
supporting multiple radios in a single device for local area networking,
personal area networking and mobile location-based services.
"Like Atheros, u-Nav leads the industry with highly integrated,
leading-performance solutions and was among the first companies to deliver
single-chip CMOS GPS," said Craig Barratt, president and chief executive
officer of Atheros. "Their engineering team possesses significant RF design
expertise on CMOS technology, which complements Atheros' design capability
and culture. With u-Nav's GPS competency we will deliver an impressive set
of wireless solutions that include Wi-Fi, Bluetooth and GPS, increasing the
value we bring to our customers."
The research firm, In-Stat, forecasts the number of GPS-enabled mobile
devices to grow from 180 million units in 2007 to 720 million units in
2011. This compound annual growth rate of more than 75 percent is driven by
the increasing popularity among consumers of GPS services in wireless
handsets and personal navigation devices, and the expansion of the
capability into a wide array of consumer devices such as laptops, mobile
gaming products and digital cameras.(1)
"We are enthusiastic about joining Atheros. With its exemplary
reputation for engineering best-in-class communications solutions, Atheros
provides us with a great development environment and the opportunity to
significantly expand the adoption of our GPS solutions," said Greg Winner,
formerly chief executive officer of u-Nav, now General Manager of Atheros'
GPS business unit. "Atheros' strong PC, networking and consumer products
customer base provides an extensive channel in which to leverage u-Nav's
GPS capabilities and to achieve synergies for delivering Wi-Fi, Bluetooth
and GPS from a single, trusted vendor."
With the acquisition of u-Nav, Atheros gains 54 employees located at
u-Nav's Irvine, Calif., headquarters and its European engineering facility
in Tampere, Finland. Upon closing the transaction, Atheros will also take
assignment of the patent cross-license agreement already in place between
u-Nav and SiRF Technology, Inc.
The cash and stock transaction, currently valued at approximately $54
million, includes $15.4 million in cash and 1.28 million shares of Atheros
common stock and may include an additional consideration to shareholders if
certain defined milestones are achieved. A portion of the consideration
will be held in escrow for up to 12 months. Atheros may record a one-time
charge for purchased in-process research and development expenses. The
amount of that charge, if any, has not yet been determined. The boards of
directors of both companies have approved the transaction. Completion of
this transaction is subject to customary closing conditions and is expected
to close in December 2007.
About Atheros Communications, Inc.
Atheros Communications is a leading developer of semiconductor system
solutions for wireless and other network communications products. Atheros
combines its wireless and networking systems expertise with
high-performance radio frequency (RF), mixed signal and digital
semiconductor design skills to provide highly integrated chipsets that are
manufactured on low-cost, standard complementary metal-oxide semiconductor
(CMOS) processes. Atheros technology is used by a broad base of leading
customers, including personal computer, networking equipment and consumer
device manufacturers. For more information, please visit
http://www.atheros.com or send email to firstname.lastname@example.org.
Atheros, the Atheros logo, ROCm are trademarks of Atheros
Communications, Inc. All other trademarks mentioned in this document are
the sole property of their respective owners.
NOTE ON FORWARD-LOOKING STATEMENTS:
Except for the historical information contained herein, the matters set
forth in this press release, including the anticipated benefits for Atheros
of the acquisition of u-Nav, product aggregation, future products and
features and expansion into new markets are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially, including, but not
limited to, difficulties in the integration of acquired businesses, and the
risks detailed in Atheros' Annual Report on Form 10-K for the year ended
December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2007, as filed with the Securities and Exchange
Commission, and in other reports filed with the SEC by Atheros from time to
time. These forward-looking statements speak only as of the date hereof.
Atheros disclaims any obligation to update these forward-looking
Although we believe that the forward-looking statistical information
from In-Stat is reliable, we have not independently verified this data.
In-Stat generally indicates that it has obtained its information from
sources believed to be reliable, but does not guarantee the accuracy and
completeness of the information.
(1) Source: In-Stat, "GPS Chips in Mobile Devices," October 2007
SOURCE Atheros Communications, Inc.