Flarion deal closes

Qualcomm today finalized its $600 million acquisition of Flarion, bringing into the fold the broadband wireless company’s significant store of orthogonal frequency division multiplexing technology (OFDM) and intellectual property.

Earlier this week, Qualcomm cleared its final hurdle for the acquisition as the U.S. Justice Department dropped its query into any possible anti-trust violations. The inquiry was only a preliminary review under the Hart-Scott-Rodino Act, which requires companies to undergo evaluation from anti-trust authorities, it set back Qualcomm’s original acquisition timeline. Qualcomm had expected to close the deal before the end of 2005.

The way the deal is structured, Qualcomm will pay $600 million in cash and stock to Flarion’s private shareholders. It will also cough up an additional $205 million if Flarion’s technology and equipment sales meet certain milestones, though it did not specify what those milestones are. Qualcomm said the acquisition will cost it 2 cents against its pro-forma earnings per share this fiscal year and overall dilution of 1 cent per share. The majority of Flarion employees will also continue to work for Qualcomm.