Overview
Qualcomm Acquires Location-Based Services Provider, Skyhook
On April 26th, 2022, Qualcomm (NASDAQ: QCOM) closed the acquisition of Liberty Media portfolio company, Skyhook Wireless.
Description
Skyhook Wireless is a leading global location-based services provider enabling solutions for some of the largest companies in the world, including Microsoft, T-Mobile, Qualcomm, Kyocera, and KDDI. With over 650 issued patents, Skyhook Wireless is a technology and innovation leader and provides the most accurate and open platform for third-party access. Skyhook is unique in how they use over 6 billion global WiFi and other beacons in lieu of or to supplement GPS location, and is known for being the original location provider for the Apple iPhone.
Skyhook’s closest competitors are other independent location technology companies including PlaceIQ, Polte, IndoorAtlas, Placed, Near, and HERE.
Skyhook was founded in 2003, and headquartered in Boston, Massachusetts. The company was acquired by TruePosition, a subsidiary of Liberty Media (NASDAQ: LSXMB) for approximately $57.5mm in cash, in February 2014, and the merged entity took the Skyhook name.
Observations
Location has become a core requirement for nearly all mobile and IoT devices, as well as many non-mobile applications. However, continued explosion in mobile and IoT devices will be the main driver for an ever-increasing need for location-based information. That location-based information requires the critical underlying positioning technology that Skyhook Wireless provides.
With the acquisition of Skyhook Wireless, Qualcomm becomes a key supplier of positioning technology to their core markets, and beyond.
Often, buyers and sellers have a previously existing relationship, which holds true in this case. Qualcomm had been a customer of Skyhook’s for a number of years, demonstrating the “Acquire your Acquirer” approach to driving premium value M&A.
Rationale
Location has become central to solutions across numerous verticals, essential to wireless services, and critical for IoT. As a key supplier supporting the wireless and IoT markets, Qualcomm has now expanded its offerings to include this important value-added service. Qualcomm is also uniquely positioned to ensure the continued global quality and growth of the Skyhook positioning network.
Additionally, Skyhook’s intellectual property portfolio fits well with Qualcomm’s focus on IP and will provide a platform for further innovation.