Smith Micro to buy PCTEL’s mobile division for $59.7M

Smith Micro Software Inc. announced it will acquire PCTEL’s Mobility Solutions Group for $59.7 million, the company announced. PCTEL’s mobile division offers a range of software that allows users to roam among networks including 3G, Wi-Fi, WiMAX and VoIP. The company sells the products to wireless carriers, handset makers and others.
“PCTEL’s Mobility Solutions Group is the ideal complement to our existing technologies and plays to our strength in key growth markets in the wireless software universe,” said William Smith Jr., president and CEO of Smith Micro Software. “This acquisition not only expands our technology portfolio, but it is a significant step in the evolution of our business. This transaction will enable us to significantly broaden our customer base.”
Smith Micro’s stock was up around 6% to around $8.20 per share in after-hours trading on the news. PCTEL’s stock was unchanged in after-hours trading.
Smith Micro offers a range of technologies, including products that allow users to manage various network connections.
PCTEL said it will score $42 million from the sale of the division after fees, taxes and other expenses. PCTEL acquired the business for $1.5 million in 2002.