Chinese baseband chip maker Spreadtrum recently announced that it has signed a definitive agreement with Quorum Systems, a US-based fabless company with core competence in the design of highly integrated CMOS (Complementary Metal-Oxide-Semiconductor) RF (Radio-Frequency) transceivers.

The deal is valued at US$70 million, of which US$55 million are in cash and US$15 million in stock, plus a US$6 million cash earn-out over a two-year period, Xinhua PR Newswire reported. According to the same report, this deal has obtained the approval from the boards of both parties as well as Quorum's shareholders, pending review by the CFIUS (Committee on Foreign Investment in the United States).

This deal is slated for completion in December 31, 2007.

Under the agreement, both parties are expected to gain a significant share in the wireless telecommunications market, leveraging Spreadtrum's strength in broadband solutions and Quorum's experience in CMOS RF transceiver design. Quorum's offerings have been adopted in a wide range of applications based on different standards - including GSM (Global System for Mobile communications), GPRS (General Packet Radio Service), EDGE (Enhanced Data for GSM Evolution), and 3G HSDPA (High-Speed Downlink Packet Access).