u-blox Acquires 4M Wireless for LTE Technology

u-blox, fabless provider of positioning and wireless semiconductors, software and solutions, will acquire 4M Wireless, a company that designs and develops software and test solutions 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, u-blox said. 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.

Key terms of the transaction include acquisition of 100% of the shares of 4M Wireless at a price of approximately $9 million US, depending on earn-out; intellectual property and software in the area of LTE wireless technology; and 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 more than 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.