NXP Semiconductors has announced plans to acquire GloNav Inc., a US-based fabless GNSS semiconductor company, for $85 million in cash. The deal is expected to close in the first quarter of 2008, subject to regulatory approvals.
According to NXP, the company plans on integrating GloNav’s GPS technology with NXP’s expertise in Bluetooth, FM radio, and USB “to offer a broader connectivity suite to the mobile phone market.”
NXP Semiconductors has announced plans to acquire GloNav Inc., a US-based fabless GNSS semiconductor company, for $85 million in cash. The deal is expected to close in the first quarter of 2008, subject to regulatory approvals.
According to NXP, the company plans on integrating GloNav’s GPS technology with NXP’s expertise in Bluetooth, FM radio, and USB “to offer a broader connectivity suite to the mobile phone market.”
"We have already turned the cell phone into a multimedia wallet,” says NXP Semiconductors CEO Frans van Houten commented. “It’s only natural that we also want to use our mobile phones to navigate and to find local goods and services. GPS integration allows us to create these and many more interesting and dynamic features.”
GloNav has approximately 50 employees and contractors at locations in the US, UK, Ireland, and Taiwan. They will join NXP’s Mobile and Personal Business Unit. An additional payment of up to $25 million in cash is contingent upon GloNav reaching certain revenue and product development milestones over the next two years.
GloNav and its GPS technology have a long history or corporate identity and technology, going back 20 years to Navstar Ltd., a UK-based company that established a strong presence in military test range instrumentation markets. At various times the company was owned by Symmetricom and, most recently, Ceva Inc.
GloNav Inc. was established and funded in 2006 by Atlantic Bridge Venture (ABVEN), a Europe-based private equity firm, through the divestment of Ceva Inc.’s GPS technology and product lines and merger with California-based RFDomus Inc.
CEVA’s ownership in GloNav is 19.9 percent on a fully diluted basis. Based on its ownership percentage and the acquisition purchase price, Ceva’s share is valued at approximately $17 million, over four times the recorded value of approximately $4 million for the GloNav investment in Ceva’s financial statements.
NXP was founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of €5 billion in 2006.
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