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» Enterprise IT Planet » Networking » Networking Features

Networks Converge: Qualcomm Snaps Up Atheros

By Sean Michael Kerner
January 5, 2011

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Qualcomm's purchase of Atheros suggests that there will come a day when cellular and Wi-Fi networks are fully converged. Sean Michael Kerner reports.

The worlds of cellular and Wi-Fi communications are about to get a whole lot closer.

Mobile silicon technology vendor Qualcomm (NASDAQ: QCOM) today announced its intention to acquire Wi-Fi silicon vendor Atheros (NASDAQ:ATHR) in a deal valued at $3.1 billion. Qualcomm will pay $45 for each Atheros share and the deal is expected to close in the first half of 2011.

With the acquisition of Atheros, Qualcomm adds extensive local wireless connectivity technologies including Wi-Fi and Bluetooth. The acquisition serves to highlight the continuing convergence of wide and local area wireless networking technologies as mobile devices continue to proliferate.

"This acquisition makes sense on a lot of levels," Paul Jacobs, chairman and CEO of Qualcomm said during a conference call announcing the deal. "From a vision standpoint, we believe that communication capabilities will go into more and more devices in the world around us."

Jacobs noted that after the close of the deal, Atheros will become known as Qualcomm Networking and Connectivity (QNC) and current Atheros President Craig Barratt will continue to lead the division.

Read the rest at Datamation.

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