UK chip developer, CSR, best known for its Bluetooth products, has invested in the wireless location market by acquiring NordNav Technologies and Cambridge Positioning Systems.
CSR hopes to use technology from the two companies to provide a software-based high performance GPS (Global Positioning System) suitable for mass-market mobile handsets, PNDs (Personal Navigation Devices), PCs and other portable devices.
The company aims to do so for an incremental price of less than $1 of the overall bill of materials when used with CSR’s Bluetooth.
NordNav, based in Sweden, has been acquired for $40 million cash, with a further cash consideration of up to $35 million payable subject to future performance. CPS, based in Cambridge, UK, has been acquired for $35 million cash. Both NordNav and CPS were private companies, principally owned by venture capital. In October 2006 CPS received further cash funding of £180,00 from investor Prelude Trust. Spokespeople at Prelude and CPS ceo Chris Wade both denied to Mobile Europe at the time that CPS was being prepared for sale.
CSR expects to offer its first GPS products during the first half of 2007.
NordNav brings to CSR its software based GPS solution. CSR will combine this with CPS’s specialised location system technology to try to deliver significant performance benefits over traditional standalone GPS offerings. CPS has claimed before that its enahnced GPS concept can work indoors, in deep urban areas and provide a shorter location fix.
ABI Research forecast that the number of GPS chips shipping into mobile phones will increase at the rate of 45% per year between 2006 and 2011 to around 200 million chips. CSR expects its low cost software based GPS will drive an increased penetration into mobile phones.
John Scarisbrick, CEO of CSR commented, “We are delighted with these acquisitions. We will be able to provide a technically superior GPS solution which, at less than $1, allows GPS to be affordable to all. CSR’s customers are enthusiastic for GPS at this much lower price point and I am confident that we will see a significant increase in mobile handset attach rates for GPS and location based services.”