Qualcomm scoops up Firethorn for mobile banking

The mobile banking space got even hotter as Qualcomm Inc. said it will shell out $210 million in cash for Firethorn Holdings L.L.C.
Firethorn’s technology links financial institutions and mobile network operators, allowing users to check bank balances and transfer funds from their handsets. The 6-year-old startup has scored several impressive wins in recent weeks, including deals with AT&T Mobility and Verizon Wireless.
Firethorn’s operations will remain in Atlanta and will be overseen by Len Lauer, Qualcomm’s executive VP and group president. Qualcomm said it hopes the acquisition will help banks drive consumer adoption of mobile banking services as well as mobile payments.
“The combination of Qualcomm’s technology strength, global reach and operator relationships make this an extremely powerful development in the world of m-commerce,” Lauer said.
Qualcomm said it expects the move to dilute its earnings for the fiscal year by about two cents per share; it said the impact will be “neutral” on the next fiscal year. Qualcomm shares were up more than 5% to $41.20 following the announcement.