SAN DIEGO-Qualcomm Inc. announced it has acquired Berkana Wireless Inc., a wireless chip designer, for $56 million in cash.
Silicon Valley-based Berkana provides metal oxide semiconductor radio frequency integrated circuits, or RF CMOS chips, to the wireless industry, and Qualcomm said it expects Berkana’s technology to help boost its growth in the third-generation wireless market.
The company also said it expects a one-time charge of about $10 million to cover expenses for research and development that began before the acquisition. The company said the acquisition will lower its 2006 earnings by about a half cent per share. News of the acquisition didn’t seem to faze Qualcomm’s stock on the Nasdaq; it was trading at $45.40, just 3 cents below the stock’s opening price.
“Qualcomm and Berkana share a common vision, with complementary products, processes and roadmaps,” said Sanjay Jha, president of CDMA Technologies at Qualcomm. “Our aligned strategies make this decision a logical and mutually beneficial one.”
