RDA Microelectronics (RDA) Acquires All of Coolsand Baseband IP for $46M

RDA Microelectronics (Nasdaq: RDA) announced that it has acquired all of the baseband intellectual property of Coolsand Holding Co., Ltd., a privately held baseband company with business operations in China, and its subsidiaries ("Coolsand"). The consideration paid is $46 million, comprised of approximately $20 million in cash and 15 million RDA ordinary shares. The market value of the shares totals approximately $26 million as determined by the March 21, 2012 NASDAQ closing price of RDA's American Depositary Shares, each representing six ordinary shares.

The asset purchase provides significant strategic benefits to RDA's business, including:

• Expanding its product offerings to provide a comprehensive portfolio of integrated and standalone solutions for China handset manufacturers;
  
  
• Increasing silicon content per handset significantly;
  
  
• Extending its total addressable market (TAM) to include the worldwide baseband market;
  
  
• Diversifying and expanding its long-term revenue growth prospects; and
  
  
• Increasing its customer leverage and market share expansion opportunities.

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