KING OF PRUSSIA, Pa.-Investors sent shares of InterDigital Communications Corp. skyward after the technology firm announced a $285 million deal with South Korean manufacturer LG Electronics Co. Ltd.
In a filing with the U.S. Securities and Exchange Commission, InterDigital unveiled a five-year, non-exclusive patent licensing agreement with LG for a handful of second-generation technologies-including TDMA, GSM, GPRS and EDGE-as well as W-CDMA, TD-SCDMA and CDMA2000-based third-generation technologies. Analysts said the move could lead to more deals for InterDigital; First Albany upgraded the company from neutral to strong buy.
InterDigital shares soared $4.95, or 27 percent, to $23.56 in mid-day trading on the Nasdaq after the news. The surge topped InterDigital’s prior 52-week high of $20.58 per share.
