Shares of Aliso Viejo software maker Smith Micro Inc jumped in afterhours trading after the company said it’s set to pay $60 million for a unit of Chicago’s PCTEL Inc.
The stock rose nearly 10% on a recent market value of about $233 million.
Smith Micro, which makes software used by wireless carriers on cell phones and other handheld devices, said the all-cash deal will give it PCTEL’s cell phone and wireless Internet software unit.
“PCTEL’s mobility solutions group is the ideal complement to our existing technologies and plays to our strength in key growth markets in the wireless software universe,” said Chief Executive William Smith. “This acquisition not only expands our technology portfolio, but it is a significant step in the evolution of our business. This transaction will enable us to significantly broaden our customer base.”
The deal is expected to close Jan. 4.
