Qualcomm completed its previously announced acquisition of Atheros Communications. The deal had an enterprise value of approximately $3.1 billion.
“Today marks another milestone in Qualcomm’s mission to provide our customers with the best-in-class connectivity and networking solutions needed to capitalize on expanding business opportunities beyond handsets and tablets,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm.
While the accounting for the transaction is not yet finalized, Qualcomm estimates that on a Non-GAAP basis the acquisition will be modestly dilutive to earnings per share in fiscal 2011 and modestly accretive in fiscal 2012, consistent with our previous forecasts. In addition, based on preliminary estimates, Qualcomm expects the transaction to be further dilutive to GAAP earnings by approximately $0.09 to $0.13 per share for the remainder of fiscal 2011 driven primarily by certain near-term purchase accounting charges and secondarily by ongoing share-based compensation expense.
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- The deal was first announced in January 2011.
- Atheros, which is based in San Jose, California, is a leading supplier of Wi-Fi silicon. Its product line includes wireless LAN client chips, network processors, Ethernet transceivers, Ethernet switching silicon, Powerline SoCs, and Bluetooth devices. The company has approximately 1,700 employees and reported Q3 2010 revenue of $247 million, up 4 percent compared to $238.2 million reported in the second quarter of 2010.
