u-blox will gain key LTE technology
Thalwil, Switzerland – April 24, 2012 – u-blox (SIX:UBXN), a leading fabless provider of positioning and wireless semiconductors, software and solutions, announces the acquisition of 4M Wireless. 4M Wireless designs and develops leading software and test solutions that are crucial for developing fourth generation (4G) mobile wireless devices based on the latest Long Term Evolution (LTE) standards.
The acquisition will give u-blox ownership of advanced protocol stacks that are licensed to chipset vendors whose products enable 4G user equipment for applications with needs for high speed data connectivity such as smartphones, tablet computers, notebooks and any other high-speed wireless modems. Also a variant of the products is licensed to manufacturers of 4G test equipment. 4M Wireless was founded in 2006 and has headquarters in the UK and operations in Lahore, Pakistan’s center for technology and higher education. The company has been profitable over the past 3 years.
“4M Wireless adds leading edge know-how in the area of next-generation wireless technology that will operate over 4G networks worldwide” said Thomas Seiler, CEO of u-blox. “Their proven software and test solutions and impressive customer list also brings u-blox immediate new licensing revenues in Europe, Asia and America”.
“We are very pleased to be part of an important and growing global company such as u-blox and to expand its wireless service capabilities” said Atif Malik, CEO of 4M Wireless. “As part of u-blox we will strengthen services and support to our product licensees and continue the LTE protocol stack roadmap.”
Key terms of the transaction include:
- Acquisition of 100% of the shares of 4M Wireless at a price of approximately 9 million US Dollars, depending on earn-out
- Intellectual property and software in the area of LTE wireless technology
- Integration of the 4M Wireless business and employees into u-blox’ organization
LTE is a unifying technology for almost all mobile operators around the world. All GSM/UMTS operators as well as most CDMA operators have agreed to evolve to LTE. Currently there are 35 commercially available LTE networks in over 20 countries, and 48 manufacturers have already announced 197 different LTE end-devices. 300 Million LTE subscribers are expected by 2015.
The acquisition is subject to customary closing conditions and pending regulatory approval. Closing is expected by September 2012.
Conference call information: u-blox will conduct a conference call with financial analysts and media to discuss this news released today at 11:30 am, CET. Register here
A supplemental slide presentation will be available on u-blox’ website under the "Investors" section by 12:00 pm CET on the day of the call (April 24, 2012).
u-blox is a leading fabless semiconductor provider of embedded positioning and wireless communication solutions for the consumer, industrial and automotive markets. Our solutions enable people, devices, vehicles and machines to locate their exact position and wirelessly communicate via voice, text or video. With a broad portfolio of GPS modules, chips, and software solutions together with wireless modules and solutions, u-blox is uniquely positioned to enable OEMs to develop innovative solutions quickly and cost-effectively. Headquartered in Switzerland and with global presence in Europe, Asia and the Americas, u-blox employs over 200 people. Founded in 1997, u-blox is listed on the SIX Swiss Exchange.
About 4M Wireless
Founded in 2006 by telecom industry veterans, 4M Wireless is a key player in the 4G ecosystem, providing the mobile technology industry with critical software solutions. Since its inception, 4M Wireless has been aggressively developing its products very close to the schedules of the 3GPP LTE specifications and is at the forefront of the market. The company has excelled in designing highly complex software which is now being used by a variety of leading customers and partners. The company is headquartered in the UK with office in Pakistan. The company employs over 50 people.
u-blox contacts for investor relations
Roland Jud, Chief Financial Officer
Phone: +41 44 722 74 25
Thomas Seiler, Chief Executive Officer
Phone: +41 44 722 74 22
This release contains certain forward-looking statements. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the u-blox Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group’s products, the potential for the Group’s products to become obsolete, the Group’s ability to defend its intellectual property, the Group’s ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group’s ability to generate revenues and profitability, and the Group’s ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. u-blox is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise.
This press release is published in German and English. Should the German translation differ from the English original, the English version is binding.