Atheros Communications To Buy U-Nav Microelectronics For About $54 Mln - Update

(RTTNews) - Atheros Communications Inc. (ATHR | charts | news | PowerRating), a developer of semiconductor system solutions, on Thursday said it has agreed to buy u-Nav Microelectronics, a privately held fabless semiconductor company, in a cash and stock deal valued at about $54 million. The company expects to complete the acquisition in December 2007, subject to customary closing conditions.

The purchase price includes $15.4 million in cash and 1.28 million shares of Atheros common stock. It may include an additional consideration to shareholders if certain defined milestones are achieved. A portion of the consideration will be held in escrow for up to 12 months.

The Santa Clara, California-based company believes that the acquisition would expand its portfolio with u-Nav's GPS technology.

With the acquisition of u-Nav, Atheros gains 54 employees located at u-Nav's Irvine, California, headquarters and its European engineering facility in Tampere, Finland. Greg Winner, formerly chief executive officer of u-Nav, has joined as General Manager of Atheros' GPS business unit.

Upon closing the transaction, Atheros will also take assignment of the patent cross-license agreement already in place between u-Nav and SiRF Technology Inc.

Atheros expects to incur a one-time charge for purchased in-process research and development expenses. The amount of that charge has not yet been determined.

ATHR closed Thursday's regular trading session at $30.32, down 66 cents or 2.13%. In the after-hours, the shares further lost 35 cents or 1.15%.

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