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Broadcom to buy UK's Innovision for $47 mn

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CIOL Bureau
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CALIFORNIA: U.S. chipmaker Broadcom Corp offered to buy Innovision Research and Technology in a cash deal that valued the British mobile-phone chipmaker at about 32 million pounds ($47.4 million), to strengthen its wireless connectivity business.

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Under terms of the deal, Innovision investors would get 35 pence per share, a 84.2 percent premium to the stock's Thursday close.

Separately, Innovision, which focuses on short-range data transfer between devices through near field communications (NFC), reported a pretax loss of 2.9 million pounds for the year to end-March, nearly flat compared with the year ago.

Broadcom expects NFC to become increasingly adopted in smart phones and other mobile devices along with Bluetooth, Wi-Fi, FM and global positioning systems.

Broadcom said it had received the support of about 54.1 percent Innovision shares for the deal, which it would fund with existing cash resources.

Innovision shares were up 76.3 percent to 33 pence at 0720 GMT on Friday on the London Stock Exchange. Broadcom shares closed at $35.50 on Nasdaq on Thursday.

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