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Qualcomm acquires OFDMA developer

Posted: 25 Jan 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Qualcomm? CDMA? Flarion Technologies? Orthogonal Frequency Division Multiplex Access? OFDMA?

Qualcomm Inc., one of the leading developers and innovators of CDMA, announced that it has completed the acquisition of Flarion Technologies, a developer of Orthogonal Frequency Division Multiplex Access (OFDMA) technology and the inventor of FLASH-OFDM technology for mobile broadband Internet protocol (IP) services.

Qualcomm reportedly paid approximately $600 million in Qualcomm stock and cash, including the assumption of vested options and warrants at fair value. Upon the satisfaction of certain milestones, Qualcomm may also pay an additional $205 million in the form of cash and Qualcomm stock.

As previously announced on Jan. 13, 2006, the Antitrust Division of the U.S. Department of Justice informed Qualcomm and Flarion that it had terminated its review of the transaction under the Hart-Scott-Rodino Act.

"Flarion's expert engineering staff provides a significant addition to the resources that we have dedicated over the years to develop OFDM and OFDMA technologies. Its impressive intellectual property enhances our substantial OFDMA portfolio," said Qualcomm CEO Paul Jacobs. "While CDMA remains the optimal technology to provide broadband, spectrally efficient, mobile wide area wireless networks for the foreseeable future, OFDMA's low complexity at wide signal bandwidths makes it a potential alternative where large blocks of spectrum can be dedicated. This acquisition greatly enhances Qualcomm's ability to accelerate the development of both CDMA and OFDMA in support of its customers and partners."

Qualcomm expects the acquisition to contribute approximately 2 cents dilution to pro forma earnings per share and an additional 1 cent dilution to total Qualcomm earnings per share in its fiscal year ending September 2006.

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