Spreadtrum Communications Inc., a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, announced that it has completed a majority acquisition of WCDMA solutions provider MobilePeak Holdings Ltd. on September 30, 2011.
The acquisition of MobilePeak allows Spreadtrum to enter the global 3G and LTE markets with WCDMA/HSPA+ technology. MobilePeak's 3G technology combined with Spreadtrum's advanced 40 nm baseband platform will enable Spreadtrum to deliver low cost, high performance WCDMA solutions for the global market and serve as a foundation for the company's next-generation multi-mode 3G/4G solutions. MobilePeak's technology supports 3GPP standards through Release 7, including a full-rate 384 Kbps modem and HSPA+ technology up to Category 14 at 21 Mbps maximum downlink speed and 11 Mbps maximum uplink speed. Spreadtrum anticipates that its first WCDMA baseband platform introduction leveraging MobilePeak's technology will be in the first half of 2012, targeting consumers in emerging markets as well as 3G subscribers on the China Unicom network.
Spreadtrum increased its equity ownership in MobilePeak to approximately 85 percent as a result of the acquisition. Spreadtrum expects to purchase the remaining outstanding shares by year end. Spreadtrum expects the total cash consideration for the ordinary shares, including shares purchased on September 30, 2011 and shares that remain to be purchased, to be approximately US $5 M. Spreadtrum may also pay additional cash and grant restricted share units to MobilePeak team members as they meet certain product development milestones.