will buy Motorola’s
global positioning system
million in cash.
The San Jose, Calif., navigation chip and software maker will integrate
Motorola’s products, which are used in a range of mobile platforms, such as automobile navigation systems, cellular handsets and two-way radios.
SiRF will also gain the rights to GPS chipsets that Motorola has in
development and the services of 40 Motorola employees based in Tempe, Ariz.
SiRF will open a design center in the Phoenix area to accommodate them.
“Selective acquisitions that add significant value to our core market
leadership position are an integral part of our growth strategy,” Rebecca
DiCorti, a SiRF spokeswoman, said.
In late April, it paid $33 million in cash and stock for Kiesel
Microelectronics, a Stockholm-based designer of complex radio frequency
integrated circuits founded by Ericsson
SiRF’s chips and software are used in a number of products, including
automobile navigation and telematics systems as well as mobile phones,
mobile consumer devices and PDAs.
For its part, Schaumburg, Ill.-based Motorola said it will be able to devote
more attention to its core automotive business. As part of the deal, SiRF
will become a preferred GPS technology supplier to Motorola.
SiRF’s architecture is currently used in Motorola’s iDEN handsets. The
company has also worked with Motorola’s 3G group, DiCorti said.