Acquisition of Cognovo gives u-blox own 4G chip technology

THALWIL, Switzerland, June 28, 2012 /PRNewswire/ -- u-blox (SIX:UBXN), a global leader in positioning and wireless semiconductors, announces the acquisition of UK-based Cognovo Ltd., a company specializing in "Software Defined Modem" (SDM) chip development technology.

The acquisition extends u-blox' chip design capabilities to create differentiated products for strategic markets that require 4G communications combined with global positioning.

"This is a very exciting acquisition for u-blox as it positions us as an agile and cost-effective supplier of high-speed wireless modem products based on our own chip IP. This allows us to meet market demand for connected systems that require positioning, connectivity and application specific functionality on a single integrated circuit," said Thomas Seiler, u-blox CEO. "This new foundation broadens our serviceable market, and will increase our margins in the automotive, consumer and industrial sectors. Our first 4G product is planned for 2013."

Cognovo's "Software Defined Modem" (SDM) technology and development tools quickly translate complex radio modem designs into fully characterized low-power semiconductor chips. The combination of technologies from Cognovo and the recently acquired 4M Wireless will result in a new wireless modem platform based on IP owned by u-blox.

Proven design Cognovo has already demonstrated their SDM baseband chip running high-speed 4G cellular functionality working with the LTE protocol stack from 4M Wireless at Mobile World Congress. With these acquisitions, u-blox lays the groundwork for establishing a leading position in 4G wireless modems similar to the strategy that u-blox followed to become the market leader in GPS/GNSS modules. The market for 4G modems used for machine-to-machine (M2M) applications is predicted to grow rapidly, surpassing 20 million units by 2016.

"We are very pleased to deploy our SDM technology within u-blox," said Dr. Gordon Aspin, Cognovo CEO. "With over 300 man-years of R&D invested in our SDM technology, this acquisition brings together the industry's most advanced software modem development platform with some of the best IC design and GNSS engineers in the world. This will be an unbeatable team."

Key terms of the transaction include:

• Acquisition of 100% of the shares of Cognovo Ltd. at a price of 16.5 million US Dollars
• Acquisition of key intellectual property and software
• Integration of the Cognovo business and 30 employees into u-blox' organization

Conference call: u-blox will conduct a conference call with financial analysts and media to discuss this news today, June 28, at 8:00 am, CET.

A supplementary slide presentation will be available on u-blox' website under the "Investor Relations" section by 9:00 am CET.

About u-blox
u-blox is a leading fabless semiconductor provider of embedded positioning and wireless communication solutions for the consumer, industrial and automotive markets. Our solutions enable people, devices, vehicles and machines to locate their exact position and wirelessly communicate via voice, text or video. With a broad portfolio of GPS modules, chips, and software solutions together with wireless modules and solutions, u-blox is uniquely positioned to enable OEMs to develop innovative solutions quickly and cost-effectively. Headquartered in Switzerland and with global presence in Europe, Asia and the Americas, u-blox employs over 200 people. Founded in 1997, u-blox is listed on the SIX Swiss Exchange. (www.u-blox.com)  

About Cognovo Cognovo's Software Defined Modem (SDM) platform enables the creation of flexible multi-mode devices capable of operating a dynamic mix of cellular modems and broadcast receivers. The platform delivers multi-mode products with silicon area and power consumption lower than the hardware designs which exist today and in a fraction of the time. Headquartered in Cambridge, England, Cognovo has offices in Leuven, Belgium and sales representation in China, Korea, Japan and Taiwan.  www.cognovo.com

u-blox contacts for investor relations Roland Jud, Chief Financial Officer Phone: +41 44 722 74 25 E-mail: [email protected] Thomas Seiler, Chief Executive Officer Phone: +41 44 722 74 22 E-mail: [email protected]

Disclaimer
This release contains certain forward-looking statements. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the u-blox Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group's products, the potential for the Group's products to become obsolete, the Group's ability to defend its intellectual property, the Group's ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group's ability to generate revenues and profitability, and the Group's ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. u-blox is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise.

SOURCE u-blox