SiRF Technology Holdings Inc. has acquired Motorola Inc.’s GPS chipset product lines for $20 million in cash.

SiRF, already an established player in the GPS and navigation spaces, will integrate into its product portfolio Motorola’s existing GPS chip set products, including the MG2000 used in telematics applications and the MG4x00 (Instant GPS) used in cellular handsets and for public safety two-way radio designers across a range of mobile platforms.

SiRF further said it has acquired the rights to some of the GPS chip set products that Motorola currently has under development, although the company did not give specifics.

As part of the agreement, SiRF also has become a preferred GPS technology supplier to Motorola.

“Motorola is a leader in the integration of GPS in a range of wirelessly connected systems, especially in two of our key target platforms -- automotive and wireless handsets -- and we are pleased for the opportunity to become a preferred supplier of GPS technology to them,” said Kanwar Chadha, founder of SiRF, in a statement. “Strategic collaboration with Motorola in the GPS enabled location technology field will enable our two companies to drive a shared vision of accelerating the development and adoption of location-enabled products for consumer and commercial mass markets.”

SiRF currently has about 240 employees and is headquartered in San Jose, with major operations worldwide. Motorola’s GPS business has about 40 employees, based in Tempe, Ariz., and Basingstoke, U.K.

SiRF expects the transaction to result in a revenue upside of about 10 percent for the second half of 2005. Earnings per share impact is expected to be non dilutive for the rest of the year 2005 and be accretive for the calendar year 2006.

By: DocMemory
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