BOSTON (06/23/2000) - Sierra Wireless Inc. has acquired Qualcomm Inc.'s wireless module business for an undisclosed sum in an all-cash deal announced Friday.
The deal hands Qualcomm's code division multiple access (CDMA) module business to Sierra's wholly owned subsidiary, Sierra Wireless SRL. Qualcomm's sale includes their CDMA module inventory and customer contracts. It also extended its existing license agreement with Sierra Wireless.
No facilities or employees are being transferred as part of the deal, according to officials.
Sierra Wireless produces wireless modems for Internet access on cell phones, personal digital assistants or other devices. CDMA modules provide for the data transmission on radio frequencies.
The addition of these OEM module products will help Sierra Wireless accelerate time-to-market delivery and will broaden its CDMA product line to include PC Cards and OEM modules, company spokesmen said Friday.
Investors pushed Qualcomm shares on the Nasdaq up by $2 to $70 during midday trading Friday, on rumors that mobile-phone titan Nokia Corp. is looking to buy the company.
Qualcomm, in San Diego, California, can be reached at http://www.qualcomm.com/.