Qualcomm to buy Flarion for about $600 million
Qualcomm Inc. said on Thursday it would buy privately held wireless broadband technology supplier Flarion Technologies for about $600 million in stock and cash in a bid to expand its wireless technology.
Qualcomm, a wireless technology license and chip supplier, said it may pay an additional $205 million in cash and stock over the next few years depending on certain milestones.
Qualcomm said it expects the deal to dilute its fiscal 2006 earnings per share by about 3 cents. Upon closing the deal it expects $10 million in one-off charges related to in-process research and development.
It plans to issue $267 million of stock and assume existing Flarion options and warrants valued at about $128 million, and pay about $205 million in cash, net of Flarion's projected cash balance at the close of the deal.
Within eight years of the close Qualcomm plans to issue another $35 million of stock and pay another $170 million in cash.
Qualcomm expects to close the deal, which is subject to regulatory approval, later this year. Flarion was advised by Evercore Partners and Qualcomm was advised by Morgan Stanley.
posted by Fergie @ 8/11/2005 08:06:00 AM
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