Bluetooth technology company CSR has bought the assets of Cambridge Positioning Systems from private equity investors Prelude Trust for $35m to provide low cost GPS chips suitable for mass market mobile phones.
CSR has also bought Swedish company NordNav for an initial cash consideration of $40m.
CSR expects to offer its first GPS products this year and claims both acquired companies will be earnings-enhancing in 2008. The business said current GPS technology was too costly for mainstream mobile applications at $5-$10 and could reduce costs to $1.
CSR said the number of GPS chips shipping into mobile phones is forecast to increase at the rate of 45% per year between 2006 and 2011 to around 200 million chips. CSR said low cost software-based GPS will drive further use of chips in mobile phones.
John Scarisbrick, CEO of CSR, said: 'Our focus remains on the handset market and we are executing on our strategy to add value beyond Bluetooth in the phone.
'© Copyright 2007 : Noble House Media Ltd
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