Wireless technology company Broadcom has announced plans to acquire British-based chip maker Innovision Research & Technology.
The all-cash offer is priced at 35 pence per share, 84.2 per cent above Innovision's closing price last night, and amounts to a total of $47.5 million.
Innovision Research & Technology, a mobile phone chip maker, specialises in wireless near-field communication (NFC) technology.
NFC technology allows the exchange of data between devices up to a distance of around four inches or less, and is used in things like car keys, hotel room keys and electronic IDs.
The acquisition will allow the company to merge its existing portfolio of Bluetooth, 3G, GPS and Wi-Fi products with Innovision's technology in order to provide more specialised services to its clients, and to develop new products based on NFC technology.
Broadcom has said it believes the acquisition will be completed by the third quarter of 2010.
Innovision recently released a new NFC-based low-cost tag, Topaz-512, will helps to bridge the gap between low-memory tags and the more expensive products typically used for payment applications such as contactless credit cards.