Broadcom Buys-Out GlobalLocate For $226M
GPS is really starting something. Today Broadcom (Nasdaq: BRCM) acquired San Jose-based Global Locate for as much as $226M, including a $146M up-front cash payment, and up to $80M in possible cash earn-outs.
Founded in 1999, Global Locate has focused on A-GPS (or assisted GPS), which sounds like a minor derivative but it is a big deal. GPS is slow and has a hard time penetrating buildings. A-GPS marries GPS with terrestrial cell-towers. Wireless operators are already selling GPS-enabled cell phones as life-savers so that when someone calls 911 and then passes out they can be located thanks to their GPS cell phone. That works great unless that person is in a building or subway.
GlobalLocate Chips Power TomTom One GPS devices. Last January Motorola invested in Global Locate and it has also taken funding from Siemens.