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WirelessDevNet.com Press Release
Qualcomm to Acquire Mobile Banking Leader Firethorn
SAN DIEGO, Nov. 14-- Qualcomm Incorporated
(Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple
Access (CDMA) and other advanced wireless technologies, today announced it has
agreed to acquire Atlanta-based Firethorn Holdings, LLC, an industry-leading
mobile banking enabler. The addition of Firethorn's expertise in the
financial industry and key relationships with wireless operators, financial
institutions and payment processors supports Qualcomm's broader strategy to
enable end-to-end wireless services that enhance the mobile experience and to
deliver compelling applications that drive increased consumer adoption of new
mobile data services. Qualcomm will pay approximately $210 million in cash
for Firethorn. Completion of the acquisition, which is subject to certain
closing conditions, is expected within 30 days.
Firethorn's employees will remain in Atlanta supporting its existing
financial institution and operator partners for mobile commerce applications.
The Firethorn team will continue to be led by Firethorn's current CEO, Tripp
Rackley, and will be overseen by Len Lauer, executive vice president and group
president of Qualcomm. Firethorn's expertise in financial services and
telecom, commercially deployed platform and early market leadership in mobile
banking complement Qualcomm's expertise in enabling wireless services across
networks and devices. The acquisition is intended to help financial
institutions accelerate consumer adoption of mobile banking services, such as
viewing account balances and history, bill pay and money transfers, while also
driving the development and delivery of mobile payments and mobile marketing
services.
"The acquisition of Firethorn will allow Qualcomm to help drive the
evolution of mobile banking by leveraging Firethorn's industry expertise,
reputation and success in developing relationships with financial
institutions, wireless operators and payment processors," Lauer said. "The
combination of Firethorn's mobile banking experience and market recognition
with Qualcomm's technology strength, global reach and operator relationships
make this an extremely powerful development in the world of mCommerce. The
acquisition solidifies Qualcomm's commitment to the emerging mCommerce
marketplace and builds upon a foundation established by Qualcomm Enterprise
Services, a business unit focused on providing integrated wireless systems and
services to businesses around the world."
"Qualcomm is a recognized technology leader and this acquisition is a
strong endorsement of the strategic importance of mobile commerce," said Tripp
Rackley, chairman and chief executive officer of Firethorn. "The team at
Firethorn will now join this industry leader as we continue to evolve mobile
commerce solutions and bring new and exciting functionality to the mobile
handset, including expanded payment options."
As a result of the acquisition, Qualcomm expects approximately $0.02
dilution to pro forma earnings per share in its fiscal year ending September
2008 and a neutral impact on fiscal year 2009 earnings per share.
Founded in 2001, Firethorn is a mobile banking services enabler that links
financial institutions and wireless operators through a unified, secure and
scalable technology platform that seamlessly extends full-service banking
capabilities to consumers from many financial institutions to many wireless
devices. With Firethorn, financial institutions and wireless operators gain a
competitive service differentiator that improves customer retention, generates
revenue and answers consumer demands for more product/service convenience. In
addition to major wireless operator partnerships, Firethorn's financial
institution partners include Wachovia, SunTrust Bank, Regions Financial,
BancorpSouth and Synovus, among others.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and
delivering innovative digital wireless communications products and services
based on CDMA and other advanced technologies. Headquartered in San Diego,
Calif., Qualcomm is included in the S&P 500 Index and is a 2007 FORTUNE 500(R)
company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
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