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Atheros today announced that it has signed a definitive agreement to acquire u-Nav Microelectronics, a privately held fabless semiconductor company specializing in global positioning system (GPS) chipsets and software.

Atheros gains 54 employees located at u-Nav's Irvine, CA headquarters and its European engineering facility in Tampere, Finland. Upon closing the transaction, Atheros will also take assignment of the patent cross-license agreement already in place between u-Nav and SiRF Technology, Inc.

The cash and stock transaction, currently valued at approximately $54 million, includes $15.4 million in cash and 1.28 million shares of Atheros common stock.

The boards of directors of both companies have approved the transaction, which is expected to close this month.

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