Broadcom to buy GPS firm for handset location

Broadcom Corp. plans to acquire GPS know-how, products and software by purchasing Global Locate Inc., a privately held firm that currently supplies GPS solutions to handset vendors, the two companies announced.
Broadcom will pay $146 million in cash, with up to another $80 million possible if Global Locate meets certain performance goals, according to Robert Rango, senior VP of Broadcom’s Wireless Connectivity Group.
Broadcom, which makes semiconductors for both wired and wireless products, is focusing greater efforts on next-generation cellphone technology and has been in the headlines lately by winning two patent disputes with Qualcomm Inc., a leader in 3G chip technology.
Rango said that Broadcom is positioning itself to provide low power-consuming combinations of chip functionality, including Bluetooth, Wi-Fi and FM radios.
“You can expect to see us aggressively work to add GPS to the mix,” Rango said.
The exact timing of the deal remained unclear but, according to Rango, Broadcom will enter the market for GPS chips upon closing the transaction. Global Locate supplies GPS chips to Hewlett Packard Co. and Sharp Corp. Global Locate also operates an assisted-GPS network known as World Wide Reference Network, which Broadcom will acquire in the deal.
Rango said that the deal would bring Broadcom additional intellectual property, but that wouldn’t change the company’s current business model that focuses on selling chips, as opposed to licensing patents. Broadcom sells cellular baseband chips to Palm Inc., Panasonic and others, and also counts Motorola Inc. and Samsung Electronic Co. Ltd. as customers.
Broadcom is headquartered in Irvine, Calif., and Global Locate is based in San Jose, Calif.
The move follows Broadcom’s strategy of acquisitions to get into the wireless space. A number of the company’s products for cellphone makers were initially gained through corporate acquisitions.