Broadcom acquires Global Locate for US$226M

small package A-GPS solution
small package A-GPS solution
Broadcom Corporation, a global leader in semiconductors for wired and wireless communications, today announced that it has signed a definitive agreement to acquire Global Locate, Inc., a privately-held, fabless provider of GPS semiconductor products and software.

Global Locate clients include Sharp and HP in the mobile phone market and TomTom in the PND market. 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.

This announcement is another step in the consolidation of the GPS semiconductor market. On January this year CSR bought Nordnav and Cambridge Positioning Systems to add GPS to its range of Bluetooth and other RF silicon solutions.

According to the press release: “Broadcom expects the demand for GPS devices to increase dramatically as the deployment of GPS in mobile phones increases. Combining Global Locate's GPS technology with Broadcom's leading Bluetooth, Wi-Fi(R), cellular and other mobile technologies will provide leading handset makers with wireless connectivity solutions that add significant value to feature and smart phone products”.

"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." said Robert A. Rango, Senior Vice President and General Manager of Broadcom's Wireless Connectivity Group.

"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," said Scott D. Pomerantz, President and Chief Executive Officer of Global Locate.

Broadcom paid US$146 million in cash, an additional US$80 million in cash being reserved for future payment upon satisfaction of certain performance goals.

Tuesday, June 12th 2007

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