Qualcomm has confirmed it plans to acquire Atheros Communications for $3.1 billion, ending speculation that saw both firms’ stock price soar.
The CDMA pioneer agreed a cash price of $45 per share for Atheros yesterday, stating the firm would help it expand beyond its traditional cellular markets once the purchase is completed during 1H11.
Speculation that a deal was in the works caused a near $7 spike in Atheros’ Nasdaq stock price on Tuesday, taking the price per share to $44, while Qualcomm’s own stock increased 1.6% to $50.97, Bloomberg reported.
Both firms saw their stock rise again Wednesday after the deal was confirmed, with Qualcomm up 1.9% and Atheros 1.2%, WSJ.com said.
Qualcomm chief Paul Jacobs said the Atheros deal will allow his firm to “expand access to new partners and distribution channels,” by pushing its mobile platforms into new devices.
The firm hopes to connect mobile phones to a growing number of Wi-Fi enabled consumer electronics products, the Journal noted.