In a merger of wireless players, Qualcomm will pay $600 million for Flarion Technologies, the companies announced today.
“The combination of Flarion and QUALCOMM’s engineering resources greatly strengthens our position as a continued technology innovator and leader in the wireless industry,” Paul E. Jacobs, CEO of Qualcomm, said in a statement.
The pickup gives San Diego-based Qualcomm, which specializes in Code Division Multiple Access
Flarion’s product line includes base stations, modems, embedded chipsets, and system software to create an end-to-end network for mobile operators.
The company’s products are built on Orthogonal Frequency Division Multiplex Access
“The two companies have very similar cultures and the combination of the two will be positioned very well with respect to both CDMA and OFDMA wireless technologies,” Rajiv Laroia, founder and CTO of Flarion, said in a statement.
The cash and stock acquisition is expected to close later this year. The purchase price could be increased another $205 million if Flarion reaches certain milestones over the next several years, the companies said.
Flarion, which is based in Bedminster, N.J., has been developing its technology since 2000 and has received financial backing from a number of high-profile venture capital and telecom industry players.