QUALCOMM, Inc. (QCOM) To Buy Envelope Tracking Company Nujira


QUALCOMM, Inc. (NASDAQ:QCOM) is said to be close to acquiring the envelope tracking firm, Nujira. While the company has confirmed the negotiations to Business weekly, it did not disclose any details or when it will make the deal public. However, the transaction appears to be valued at roughly $2.5 billion and is predicted to be closed before the end of the summer season.

First Firm

QUALCOMM, Inc. (NASDAQ:QCOM) was the first company in shipping a chip in 2013 with the envelope tracking technology. It was also said to be the first for 3G, as well as, 4G LTE mobile devices in the industry. There have been reports of the impending acquisition of Nujira by the chip maker for quite some time.

The company’s quickest mobile processor, Snapdragon 800 SoC, was a feature in the new Google Inc (NASDAQ:GOOGL)’s Nexus 5. The mobile device also features envelope tracking chipset of Qualcomm QFE1100. That is a front-end for OEMs to aim for 4G LTE compatible devices globally such as the Nexus 5. The chip maker’s Qualcomm QFE1100 is considered a key part of its upcoming RF360 Front End. That is a complete system level solution enabling OEMs to create a sing 4G LTE design globally.

Patents

QUALCOMM, Inc. (NASDAQ:QCOM)’s intended acquisition of Nujira assumes importance. One of the reasons for this was that the company has established itself a leadership position in the envelope tracking technology. Secondly, it has 240 patents that might come in handy for the chip makers. Only this year, the ET technology firm raised $20 million to support its plan of production, continued development of product roadmap, and a fresh design centre in Silicon Valley.

The company established a world-class design team in the Great Britain with a focus on the next generation envelope technology ICs. The technology has become one of the must-have following its incorporation in the high-end smartphones. That included Samsung’s Galaxy Note 3, HTC’s One M8 and the Nexus 5. The objective of the technology is to maximize the power flowing from a radio of smartphone and cut power drain on the battery.

Adopted Approach

The chip maker has adopted the approach of Nujira after it disclosed its entry into the RF front end business. The company did it through a chip-set with the help of ET that was invented by Nujira, which is a pioneer of ET to cellular radio for over a decade now based on its application. The technology enables conservation of power rather than the traditional constant-supply voltage power amplifiers. That was possible through the adoption of the PA supply voltage. That cuts the consumption of the power of the power amplifiers, which send out the signal to the antenna.

It remains to be seen how much QUALCOMM, Inc. (NASDAQ:QCOM) will be able to gain from the planned transaction.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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