Qualcomm to Acquire Atheros for $3.1B

Qualcomm Inc. and Atheros Communications Inc. have entered into a definitive agreement whereby Qualcomm intends to acquire Atheros to accelerate the expansion of Qualcomm’s technologies and platforms to new businesses beyond cellular and provide access to significant new growth opportunities.

Qualcomm has entered into a definitive agreement to purchase Atheros for $45 per share in cash, representing an enterprise value of $3.1 billion. The transaction has been approved by the Qualcomm and Atheros boards of directors and is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Atheros’ stockholders. The transaction is expected to close in the first half of 2011. Excluding amortization of acquired intangibles, Qualcomm expects the acquisition to be modestly accretive to earnings per share in fiscal year 2012, the first full year of combined operations. Qualcomm intends to finalize its estimates of the transaction’s financial impact, as well as the accounting for the transaction, upon deal close.

Atheros’ current president and CEO, Dr. Craig H. Barratt, is expected to join Qualcomm as President of Qualcomm Networking & Connectivity.

Atheros

Qualcomm