NXP Semiconductors, the independent semiconductor company founded by Philips, announced it will acquire GloNav Inc., a US-based fabless semiconductor company developing single-chip solutions for global positioning systems (GPS) and other satellite navigation systems. NXP will purchase the company for US$85 million in cash plus up to US$25 million in cash contingent upon GloNav reaching certain revenue and product development milestones over the next two years. The transaction will give NXP immediate access to market-proven GPS products and technology. The deal is expected to close in the first quarter of 2008, subject to regulatory approvals.
“This is the second major acquisition that we have made this year to strengthen our Mobile and Personal Business Unit that quickly adds complementary technologies to our existing portfolio and meets our customers’ demands for innovative products. We are a leader in cellular system solutions. Combining GloNav’s GPS expertise with NXP’s FM Radio, Bluetooth, USB and NFC leadership, enables us to offer a broader connectivity suite to the mobile phone market,” commented Frans van Houten, Chief Executive Officer, NXP Semiconductors.
By 2010, approximately 40 percent (some 560 million) of mobile phones will be equipped with the GPS feature. “We already turned the cell phone into a multimedia wallet,” 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, continuously enriching the cell phone in our pocket,” added van Houten.
“Becoming part of NXP allows us to achieve the required scale in innovation, and opens up many new markets and customers in order to exploit the significant market potential for GPS. Our engineers are excited to become part of ambitious leadership projects in state-of-the-art technologies and to join their expertise to one of the leaders in cellular system solutions,” commented Bill McLean, GloNav’s Chief Executive Officer. “We will have access to NXP’s impressive customer base, which includes all the leading handset and device manufacturers.”
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.
GloNav has a significant intellectual property portfolio and over 20 years of technology heritage in developing silicon-based GPS solutions. Through this acquisition, NXP will be able to access GloNav’s single chip and 90nm capability to establish a strong presence in the fast growing GPS market in both personal navigation devices and mobile phones, and further strengthen its capability to offer functionally rich, integrated cellular solutions for its mobile customers.
About NXP Semiconductors
NXP is a top 10 semiconductor company 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 EUR 5 billion in 2006. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices.
About GloNav Inc.
GloNav Inc., headquartered in Newport Beach, Calif., is a fabless semiconductor company developing global positioning system (GPS) and other satellite navigation technologies and products. The company has the longest heritage of GPS technology in the semiconductor industry — more than 20 years — and leverages this into the highest-sensitivity, lowest-power and fastest time-to-first-fix (TTFF) semiconductor solutions available for the wireless handset and mobile consumer electronics device markets. GloNav is funded by European based venture capital firm, Atlantic Bridge Ventures.
GloNav’s financial adviser is Arma Partners LLP and its legal adviser is Wilmer Cutler Pickering Hale and Dorr LLP.