Qualcomm to acquire Atheros for $3.1 billion
2011-01-06Qualcomm has entered into a definitive agreement to acquire Atheros Communications. The acquisition is intended to help accelerate the expansion of Qualcomm's technologies and platforms to new businesses beyond cellular and provide access to new growth opportunities.
Under the terms of the agreement, Qualcomm will purchase Atheros for $45 per share in cash, representing an enterprise value of $3.1 billion. The transaction has been approved by the Qualcomm and Atheros boards of directors and is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Atheros' stockholders. The transaction is expected to close in the first half of 2011.
"This acquisition is a natural extension of that strategy into other types of devices," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "The combination of Qualcomm and Atheros is intended to accelerate this opportunity by utilizing best-in-class products for communications, computing and consumer electronics to broaden existing customer relationships and expand access to new partners and distribution channels."
Atheros' current president and CEO, Dr. Craig H. Barratt, is expected to join Qualcomm as president of Qualcomm Networking & Connectivity.
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