Qualcomm to Acquire Atheros for $3.1 Billion
January 05, 2011
With the purchase of Atheros, Qualcomm has placed itself in the middle of the looming convergence between Wi-Fi and cellular data.
With the purchase of Atheros, Qualcomm has placed itself in the middle of the looming convergence between Wi-Fi and cellular data. As this Datamation article notes, the $3.1 billion deal will give Qualcomm a powerful presence in the "Internet of Things."
The worlds of cellular and Wi-Fi communications are about to get a whole lot closer.
Mobile silicon technology vendor Qualcomm today announced its intention to acquire Wi-Fi silicon vendor Atheros in a deal valued at $3.1 billion. Qualcomm will pay $45 for each Atheros share and the deal is expected to close in the first half of 2011.With the acquisition of Atheros, Qualcomm adds extensive local wireless connectivity technologies including Wi-Fi and Bluetooth. The acquisition serves to highlight the continuing convergence of wide and local area wireless networking technologies as mobile devices continue to proliferate.
"This acquisition makes sense on a lot of levels," Paul Jacobs, chairman and CEO of Qualcomm said during a conference call announcing the deal. "From a vision standpoint, we believe that communication capabilities will go into more and more devices in the world around us."
Jacobs noted that after the close of the deal, Atheros will become known as Qualcomm Networking and Connectivity (QNC) and current Atheros President Craig Barratt will continue to lead the division.
Steve Mollenkopf, executive vice-president and group president of Qualcomm noted during the call that the acquisition of Atheros is part of the strategy to move into silicon beyond cellular. Mollenkopf added that Qualcomm expects that the Atheros acquisition will enable them to grow a platform business in consumer electronics as well as networking and computing.
Read "Qualcomm Acquires Atheros for $3.1 billion" at Datamation