Broadcom Corporation (BRCM) announced that its subsidiary, Broadcom International Ltd., will make an all-cash offer to acquire 100% stake in Innovision Research & Technology PLC.
Innovision is a leader in near-field communication (NFC) technology.
Innovision delivers innovative and market leading Integrated Circuits and IP for wireless connectivity solutions. Innovision’s primary focus is on short-range data communication from one device to another, passive and active with a special emphasis on NFC and Radio Frequency Identification solutions.
Under the terms of the offer, Innovision shareholders will receive approximately $0.52 per share in cash for every Innovision share they hold. Based on current exchange rates, this represents a total equity value of approximately $47.5 million. The offer represents an 84.2% premium above the closing price of Innovision common stock on June 17, 2010.
Broadcom expects to close the acquisition of Innovision in the third quarter of 2010.
Broadcom believes that the acquisition will provide important technology and engineering talent to strengthen its leading wireless connectivity business.
Broadcom also believes that NFC will find increasing acceptance in smart phones and other mobile devices. The technology is expected to become a valuable part of the wireless connectivity portfolio alongside other technologies such as Bluetooth, Wi -Fi, FM and GPS.
Innovision reported revenues of approximately $3.12 million for the fiscal year ended March 31, 2010, and a pre-tax loss of $4.53 million.
As of March 31, 2010, Innovision reported net assets of approximately $12.20 million and cash and equivalents of approximately $6.17 million.
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