U.S. chip outfit Broadcom Corp has made a pitch to buy out British mobile-phone chipmaker Innovision Research and Technology in a bid valued at £32 million pounds ($47.5 million).
The offer is priced at 35 pence per share, a 84.2 per cent premium on the stock's closing price last night.
Broadcom made the approach through its subsidiary, Broadcom International Ltd., which said it had agreed terms with the board of Innovision to make an all-cash offer to acquire all of the issued and to-be-issued shares in the British firm.
Innovision specialises in near-field communication (NFC) technology, a short-range high frequency wireless communication technology which enables the exchange of data between devices over distances of up to abut four inches. Applications for the technology include electronic money, identity documents, and electronic keys such as car keys, or hotel room keys, and the like.
It is likely that many of these applications will tip up in mobile phones in the near future. Broadcom evidently thinks so.
Broadcom said it expects to close the acquisition of Innovision in the third quarter of 2010.