Spreadtrum Communications, a fabless semiconductor
provider in China with advanced technology in both 2G and 3G wireless
communications standards, announced that it has signed a definitive agreement
to purchase Telegent Systems, a provider of semiconductor and software
solutions for the reception of live, broadcast television on mobile phones.
Spreadtrum does not expect significant impact to either
its cash position or operating expenses as a result of the transaction.
“Broadcast mobile TV is a popular feature with
consumers in emerging markets, which is a target market segment for Spreadtrum
and one in which we are experiencing rapid growth,” said Leo Li, president
and chief executive officer of Spreadtrum.
“The acquisition of Telegent
enhances the value proposition we can deliver to the supply chain serving this
market segment from handset manufacturer to end market brand and accelerates
our international footprint,” Leo added.
Telegent’s technology portfolio delivers more than 70
patents granted or pending and a product line consisting of analog mobile TV
ICs, hybrid analog/digital mobile TV ICs, mobile TV internal antenna
technology, TV player software, and entertainment services software that
enables the delivery of applications and advertising to handsets post-sale.
Telegent’s newly introduced product line, the TLG12xx
series, introduces new innovations to the mobile TV market, including
integrated internal antenna technology and a single-chip analog mobile TV
receiver with the lowest power consumption and the lowest external bill of
materials. Following the acquisition, Spreadtrum will explore integration opportunities with the baseband that deliver further
performance and cost benefits.
In connection with the acquisition, approximately twenty
hardware and software engineers from Telegent’s Shanghai office will join
Spreadtrum. The transaction has been approved by the Spreadtrum and
Telegent boards of directors and is subject to customary closing conditions,
including the approval of Telegent stockholders.
By Telecomlead.com Team