Qualcomm buys two microchip businesses

NEW YORK (Reuters) -- Wireless technology firm Qualcomm Inc. said Monday it is buying two microchip businesses to boost its core wireless technology product offerings.

Qualcomm said the combined effect of the acquisitions on its earnings per share would be dilutive by about 4 cents in its fiscal year ending September 2007 and modestly accretive in the full year 2008.

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The deals are expected to close by the end of December.

It is buying the majority of microchip maker RF Micro Devices Inc.'s (Charts) Bluetooth assets, based in San Diego, for $39 million.

It is also paying an undisclosed amount of cash to buy privately-owned startup Airgo Networks Inc., which provides wireless local area network technology.

Qualcomm (Charts) said the deals would allow the company to "extend our leadership in mobile broadband."

The RF Micro deal gives Qualcomm access to next-generation Bluetooth technology. Bluetooth is a short-range wireless link that transfers data between mobile phones, computers and their accessories.

RF Micro said the deal would allow it to increase its focus on its highest growth wireless business opportunities.

Airgo develops and sells chipsets and software for wireless networking, according to the company's Web site.

The Palo Alto, Calif. company was founded in January 2001, according to its Web site, and had investment from venture firms including OVP Venture Partners, Oak Investment Partners and BlueRun Ventures.

Qualcomm shares have lost about 20 percent in the past 52 weeks, partly on uncertainty created by legal disputes with Nokia (Charts) and other companies.

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