Spreadtrum Communications has signed a definitive agreement to purchase Telegent Systems, a provider of semiconductor and software solutions for the reception of live, broadcast television on mobile phones.
Spreadtrum does not expect significant impact to either its cash position or operating expenses as a result of the transaction.
“Broadcast mobile TV is a popular feature with consumers in emerging markets, which is a target market segment for Spreadtrum and one in which we are experiencing rapid growth,” said Dr. Leo Li, president and CEO of Spreadtrum. “The acquisition of Telegent enhances the value proposition we can deliver to the supply chain serving this market segment from handset manufacturer to end market brand and accelerates our international footprint.”
Telegent's technology portfolio delivers more than 70 patents granted or pending and a product line consisting of analog mobile TV ICs, hybrid analog/digital mobile TV ICs, mobile TV internal antenna technology, TV player software, and entertainment services software that enables the delivery of applications and advertising to handsets post-sale.
As the fastest-growing private company in Silicon Valley, Telegent posted 38,000 percent revenue growth from $321,000 in 2007 to nearly $124 million in 2009, by selling chips that enabled analog TV on mobile phones. Most of its revenues came from sales in developing countries like China and Brazil, where digital TV has yet to become the norm.