Spreadtrum acquires Telegent Systems

SHANGHAI, CHINA: Spreadtrum Communications Inc., a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, has signed a definitive agreement to purchase Telegent Systems Inc., 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 chief executive officer 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. Telegent's newly introduced product line, the TLG12xx series, introduces new innovations to the mobile TV market, including integrated internal antenna technology and a single-chip analog mobile TV receiver with the lowest power consumption and the lowest external bill of materials.

Following the acquisition, Spreadtrum will explore integration opportunities with the baseband that deliver further performance and cost benefits.

In connection with the acquisition, approximately twenty hardware and software engineers from Telegent's Shanghai office will join Spreadtrum. The transaction has been approved by the Spreadtrum and Telegent boards of directors and is subject to customary closing conditions, including the approval of Telegent stockholders.