Irvine startup U-Nav Microelectronics Inc., a maker of GPS chips and software, is set to be bought by Santa Clara-based Atheros Communications Inc. for $54 million.
The cash and stock deal is expected to close by the end of the year.
Wireless chipmaker Atheros is set to pay $15.4 million in cash plus 1.28 million of its shares for U-Nav, which makes a chip that runs GPS in cars, handheld media players and phones.
The company’s chips enable GPS to work in any portable device and lowers the cost of making others.
U-Nav, which has 54 workers here, will be folded into Atheros’ GPS unit.
Chief Executive Greg Winner is set to stay on as general manager of the unit.
Atheros will also get u-Nav’s engineering site in Finland.
“We are enthusiastic about joining Atheros,” Winner said. “With its exemplary reputation for engineering best-in-class communications solutions, Atheros provides us with a great development environment and the opportunity to significantly expand the adoption of our GPS solutions.”
Last year u-Nav hit a rough patch.
It had some problems with rolling out its software and faced a patent suit with competitor San Jose-based SiRF Technology Inc.
It’s since struck a licensing deal with SiRF that’s set to be transferred under Atheros.
Earlier this year the company bounced back with about a dozen design wins for its chips.
