Electronics Production | December 21, 2007
NXP to acquire GloNav
The Netherlands based company NXP Semiconductors will acquire GloNav, 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. 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.