Broadcom said that it has made a cash offer to buy UK based Innovision.
The company, which specialises in semiconductors for wired and wireless communications said that under the terms of the offer, Innovision shareholders will receive £0.35 (approximately $0.52) per share in cash for each Innovision share held, representing a total equity value of approximately $47.5 million based on current exchange rates.
This offer represents a 84.2 percent premium above the closing price of Innovision common stock on June 17, 2010.
Broadcom expects to close the acquisition of Innovision in the third quarter of 2010
We were unsure as to why Broadcom had Innovision in its sights so we had a little dig.
Innovision focuses on short-range data transfer between devices through near field communications (NFC). For example, it lets a smartphone be used in conjunction with a credit card account to buy stuff. According to Reuters it seems Broadcom expects NFC to become increasingly adopted in smartphones and other mobile devices along with Bluetooth, Wi-Fi, FM and global positioning systems and by buying Innovision it obviously feels as though it will be a step ahead here.