PA Consulting Group and 3i announce the signing of a transaction in which CSR Plc, a leading provider of Bluetooth and WLAN single chip solutions, will purchase UbiNetics' software business (Volume Product Technology - VPT), the leading cellular software company, for $48m. The sale of VPT follows the disposal of the other half of UbiNetics, its Test and Measurement division, to Aeroflex in May of this year for $84.5m.
UbiNetics is a world leader in next generation multimode 2G/3G/HSDPA cellular software and technology. It designs and develops this for integration into multimedia voice and data devices and supplies many of the world's leading semiconductor and handset and device manufacturers. UbiNetics was founded in 1999 as an independent venture company, born out of the Wireless Technology Practice of PA Consulting.
Jon Moynihan, Chairman of UbiNetics and Executive Chairman of PA Consulting, commented:
"In the six years since UbiNetics was established, we have grown the company to a position at the forefront of delivering cellular multimode software and technology, growing from 10 to a peak of 450 people prior to the recent disposal to Aeroflex, until we achieved world leadership in various facets of cellular multimode software stack technology. The joining of these capabilities to CSR's own suite of skills, coinciding with the present explosive growth in cellular handsets and services worldwide, will create a formidable new force in the wireless market. For UbiNetics' shareholders, the transaction is timed to maximise returns. The sale this year of both parts of UbiNetics - software (VPT), and UbiNetics' Test and Measurement business - has resulted in a healthy return on investment and is in line with PA's policy to realise our ventures when the timing is right.
''The sale of the two parts of UbiNetics, and the earlier sale of Meridica to Pfizer Inc., confirm PA's acknowledged ability to develop pioneering companies which generate jobs and growth in the UK economy, and become leaders in the highly competitive market for global technology. The success of PA's ventures provides a strong endorsement of the value of corporate venturing as a mechanism for fostering and developing high technology start-ups."
Laurence Garrett, 3i Director, added:
"We are delighted that our investment in UbiNetics has crystallised into an 80% IRR in such a short space of time. It has been a pleasure working alongside the UbiNetics management team helping to restructure and grow the business performance. Following 3i's stake and involvement in CSR's flotation last year, we are delighted to have been able to use our network to help UbiNetics towards its next stage of development."
