Newport Beach chip startup GloNav Inc. is set to be bought for $85 million by NXP Semiconductors, the former chip arm of Royal Philips Electronics NV.
Netherlands-based NXP is buying GloNav, a maker of chips for global positioning systems and satellite navigation systems, to expand its mobile communications chip business.
The cash deal, expected to close in the first quarter, could be worth as much as $110 million if GloNav meets sales and product development goals in the next two years.
“Becoming part of NXP allows us to achieve the required scale in innovation, and opens up many new markets and customers in order to exploit the significant market potential for GPS,” Chief Executive Bill McLean said.
GloNav was formed as an offshoot of San Jose-based Ceva Inc. in 2006. After the split, Ceva kept a 20% stake in GloNav.
In the same deal, GloNav bought Newport Beach chipmaker RFDomus Inc. for unknown terms.
As part of the NXP deal, Ceva is selling its 20% stake in GloNav. Based on the deal price, Ceva’s stake is worth about $17 million, according to a company statement.
GloNav has raised more than $16 million in venture funding from Ireland’s Atlantic Bridge Ventures.
It has about 50 workers in the UK, Dublin and Newport Beach.
GloNav is set to be folded into NXP’s mobile and personal business unit, the company said.
The deal is the second for a local GPS chipmaker this month.
On Dec. 13, Irvine’s U-Nav Microelectronics Inc., a maker of GPS chips and software, said it was being bought by Santa Clara-based Atheros Communications Inc. for $54 million.
