Qualcomm, Atheros shares rise on acquisition deal
Wi-fi chip maker Atheros agrees to $3.1 billion buyout at $45 a share
Wall Street treated Qualcomm's $3.1 billion acquisition of wi-fi chip maker Atheros as a win-win, with investors boosting shares of both companies in Wednesday trading.
(Also see: New Motorola stocks rise in Wall Street debut)
Shares of wireless technology vendor Qualcomm (NASDAQ: QCOM) finished up 1.06, or 2.1 percent, to 52.03, while shares of Atheros (NASDAQ: ATHR) gained 64 cents, or 1.45 percent, to 44.64.
Qualcomm's offer to buy Atheros, which has been accepted by the chip maker's board of directors, values the company at $45 a share. (With Atheros trading below $23 as recently as September, you wonder why Qualcomm pulled the trigger on the deal now. Presumably it could have been a lot cheaper three months ago.)
The deal will allow Qualcomm to integrate wi-fi into mobile devices, game consoles and media players. It's expected to close in the first half of next year, subject to shareholder and regulatory approval.
Another stock I want to mention is Motorola Solutions. On Tuesday, its first day of trading, shares (NASDAQ: MSI) of the Motorola spinoff gained 6.6 percent to finish at 39.77. But in the after-hours session, MSI dropped more than 6 percent. I was wondering if the same thing would happen in Wednesday's regular trading, but shares gained 6 cents to 39.83 and were never below $39.
Chris Nerney writes about the business side of technology market strategies and trends, legal issues, leadership changes, mergers, venture capital, IPOs and technology stocks. Follow him on Twitter @ChrisNerney.