This morning, Qualcommhas formally confirmed they will be announcing their intentions to acquire Atheros. For those unfamiliar with Atheros, they are one of the leading companies in the world when it comes to the manufacturing of wireless chips, specifically referring to WiFi.
There's a good chance that this acquisition is mainly focused towards strengthening Qualcomm's wireless integrated circuit business in a way that will not only allow them to have a competitive product across the spectrum of wireless technologies.
The purchase itself will equate to approximately $3.1 billion in cash. This deal has already been approved by the boards of both companies and the deal should be sealed by the second half of this year. The good thing about the deal is that Atheros and Qualcomm were not really in direct competition with each other. If anything, the agreement might actually help consumers get a more fully fledged product from Qualcomm.
There is also the likelihood that Qualcomm will integrate divisions of Atheros into the company while still allowing them to do the same as they did before. In all, this is a fairly large deal for Qualcomm to be participating in and the markets seem to agree that this acquisition is a smart one for everyone as QCOM went up 2.55 percent at the time of publication.