HispanicBusiness

Chipmaker Qualcomm Inc. (Nasdaq: QCOM) has confirmed that it is acquiring Israeli start up DesignArt Networks. Qualcomm said that the Raanana based company's system-on-chip platforms boost wireless data capacity in mobile networks. No financial details about the deal were revealed, but as "Globes" reported earlier this week when breaking the news of the imminent acquisition, Qualcomm is expected to be paying about $120-140 million including milestone payments for DesignArt Networks.

Qualcomm described DesignArt Networks as a leader in small cell modem and system design for cellular base stations and high-speed wireless backhaul infrastructure. The US company added that, "DesignArt offers system-on-chip (SoC) and software products that enable the design of indoor and outdoor small cell base stations and remote radio heads, which allow operators to expand the data capacity of their networks in a simple and cost-effective manner. DesignArt's technology also offers integrated line-of-sight and non-line-of-sight wireless backhaul to reduce the cost of outdoor small cell deployments."

DesignArt was founded in 2006 by CEO Oz Barak, CTO Assaf Touboul and Avishay Mor. Since then the company has raised $30 million from Carmel Ventures, Magma Venture Partners and Motorola Ventures. The company also received a loan from the Plenus Venture Lending Fund.

As also reported by "Globes," DesignArt Networks will become part of Qualcomm's Atheros Division. Qualcomm Atheros president Craig Barratt said, "DesignArt and its products will both enhance and accelerate our initiatives to drive increased capacity and coverage in mobile networks. Operators can significantly improve user experience across residential, enterprise and outdoor networks given the greater network efficiencies derived by implementing small cells and heterogeneous networks."

Qualcomm has an R&D center in Haifa with 250 employees, managed by Eyal Bar-David, and this will not be Qualcomm's first acquisition in Israel. In 2010, Qualcomm acquired mobile web company iSkoot for $50-$100 million.