Semiconductor firm Broadcom Corp. (NASDAQ: BRCM) announced on Tuesday an agreement to buy privately-held chip and software maker Global Locate Inc. for about $146 million in cash.
An additional $80 million will also be paid Global Locate's former owners upon the satisfaction of unspecified performance goals.
We are also pleased to add Global Locate's strong patent portfolio of over 175 issued and pending U.S. and foreign patents to our already robust patent portfolio, said Robert A. Rango, Senior Vice President at Broadcom.
The deal will let the company integrate global positioning capabilities into cell phones, and also mix GPS with other wireless standards, the company said.
Global Locate's chips use the satellite-based global positioning system (GPS), and are used in navigational devices for cars and mobile phones.
Boards of both companies have approved the purchase, the companies said. Broadcom expects the deal to close in the third quarter.
The Irvine, Calif.-based Broadcom may record an unspecified one- time cost for research and development expenses when the transaction closes, it said.