Qualcomm Buys Buzzy Chip Startup Modular for Nearly $4 Billion
Qualcomm will acquire the Silicon Valley chip startup Modular for nearly $4 billion.
The companies announced the acquisition on Wednesday; Qualcomm said it expects to issue up to 19.2 million shares of common stock in the deal, which works out to just under $4 billion based on the company's last closing share price.
The deal, which includes $300 million for Modular employees, comes nine months after the chip startup raised $250 million at a $1.6 billion valuation. It’s expected to close in the second half of this year.
Modular makes and sells a chip software platform. It also produces a proprietary coding language that allows developers to write AI software to run on different chips without having to rewrite the code for each chip. The startup’s entire team, which includes its two cofounders and around 150 employees, are expected to join Qualcomm.
“We believe the future belongs to developer-friendly,...
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