SiRF Technology To Acquire RF Transceiver Specialist Kisel Microelectronics

San Jose, CA -- SiRF Technology, a provider of GPS-enabled location technology, today announced that it has signed a definitive agreement to acquire Kisel Microelectronics, a developer of radio and mixed-signal integrated circuits for wireless communication devices, for consideration that includes cash and stock.

Kisel was founded at the end of 1999 under the name of BlueChip IC Design AB by senior designers from Ericsson to form a center of excellence for complex radio frequency integrated circuit (RFIC) design. As an independent European design house for complex integrated transceiver circuits, Kisel has been involved in the development of multiple radios using a range of process technologies such as SiGe BiCMOS to pure bipolar and analog/RF-CMOS. Designers at Kisel have extensive experience of radio and analog/mixed signal integrated circuit design.

"The design of RF transceivers is a critical core technology for our markets and is rapidly becoming an essential element in complex multi-radio system solutions," said Dr. Michael Canning, president and CEO of SiRF. "The expertise that SiRF has acquired with this transaction is truly exceptional and will be a welcome complement to our existing RF engineering group."

Kisel has established a successful track record of providing radio expertise services to wireless and optical communication equipment manufacturers around the world. Kisel has contributed its radio and mixed signal competence to applications including Bluetooth, WiMAX, WLAN, W-CDMA, UWB, GSM/PCS/DCS, and several ISM applications.

"The Kisel acquisition is a strategic part of our vision to deliver reliable location information in a world of increasing wireless connectivity. SiRF's multimode A-GPS architecture, implemented in wirelessly connected systems such as mobile phones, telematics and mobile computers, allows for a very rich location-enhanced experience for users," said Kanwar Chadha, founder and VP of marketing for SiRF. "In addition Kisel's excellent reputation for technical expertise and service with some of our key potential customers and partners in wireless industry was a critical factor in our due diligence."

As part of the transaction, SiRF will establish SiRF Technology AB (Sweden) as a wholly owned subsidiary of SiRF Technology Holdings, and all 19 employees of Kisel will join SiRF. The team in Sweden will continue their design services work for selected key customers and will also work in conjunction with the SiRF RF engineering team in San Jose on new product developments. The managing director of Kisel, Tomas Melander, will become managing director of SiRF Technology AB (Sweden).

"SiRF's vision and market leadership in the GPS enabled location technology market place opens up vast opportunities for our RF and mixed signal expertise," said Tomas Melander, managing director of Kisel. "We always had a vision to transition into a product company in the long run, and with this transaction we are glad to see this becoming a reality."

Under the terms of the agreement, in exchange for all of the outstanding capital stock of Kisel, SiRF has agreed to pay up to $33 million in combination of cash and shares of SiRF Common Stock. The board of directors of both companies and shareholders of Kisel have approved the merger. Completion of this transaction is subject to customary closing conditions and is expected to close this quarter.

Source: SiRF Technology