u‑blox (Thalwil, Switzerland), a positioning and wireless chip and module company, announced on Monday the acquisition of Fusion Wireless (San Diego, Calif., U.S.A.), a provider of CDMA wireless modules for consumer and M2M applications in North America.
The acquisition price includes $0.9 million fully paid in cash, as well as $2.1 million in existing debt, plus earn-out.
“The acquisition of Fusion Wireless immediately gives u-blox new, cutting-edge wireless module products plus access to the huge embedded CDMA market in North America for both consumer and M2M applications. It also expands our wireless module technology roadmap to cover all popular standards used in the Americas based on a layout-consistent form factor,” says Thomas Seiler, u‑blox CEO.
Key terms of the transaction include:
- Technology and modules in the area of CDMA wireless technology in several form factors
- Integration of the Fusion Wireless business into u-blox’ existing activities to leverage and further strengthen the mutual commercial activities as well as capitalize on technological synergies
CDMA is a mobile telephone standard deployed extensively in the US, and has the highest number of subscribers, according to u-blox. It includes high-speed data channels that are used for consumer devices such as notebooks and tablet computers, as well as lower data transmission rates for machine-to-machine applications such as remote metering, remote monitoring and control, fleet management, point-of-sales terminals and remote patient monitoring systems. U-blox estimates that 6 million CDMA modules will be sold in 2011 in the M2M market.