In a move that may make using your cell phone as your wallet a reality, chip-maker Broadcom said it will be making a $47.5 million offer for the near-field communication firm Innovision Research & Technology.
In a public announcement, Broadcom said:
Under the terms of the offer, Innovision shareholders will receive Pounds Sterling 0.35 (approximately $0.52) per share in cash for each Innovision share held, representing a total equity value of approximately $47.5 million based on current exchange rates. This offer represents a 84.2% premium above the closing price of Innovision common stock on June 17, 2010. Broadcom expects to close the acquisition of Innovision in the third quarter of 2010.
Broadcom is a major player in the mobile chip-making business, so it could eventually integrate Innovision’s technology into a ton of mobile phones. This is the tech that enables you to swipe your phone near a compatible retail terminal and you can make purchases without having to bust out a credit card or dirty, dirty cash. It’s unclear how long it will take Broadcom to roll out integrated NFC chips in its products.
The mobile payment space is heating up and NFC seems like a great way to go. I don’t know about you, but I’m ready to have my phone do everything from paying for dinner to opening my hotel doors. Sure, it will take time for the infrastructure to roll out but I’m excited about this future.
I’m not the only one excited, as Nokia has said each and every one of its smartphones that ship in 2011 will have NFC technology built in. This could help move the needle because Nokia is still the world’s largest smartphone maker.
Apple is also toying with NFC technology, as a recent patent showed Apple wants your iPhone to be the center of you life. We had hoped this would be in the iPhone 4 but it looks like we’ll have to wait until at least next year.