Qualcomm’s shares rallied on news of the sale
US chipset manufacturer Qualcomm has divested its healthcare focussed subsidiary, Qualcomm Life, for an undisclosed fee, according to a company statement. US private equity firm Francisco Partners has acquired the business unit for an undisclosed fee. Qualcomm Life will now be rebranded as Capsule Technologies.
“FP’s acquisition will help Qualcomm Life (now CapsuleTech) continue to deliver market leading products and services to its world class customer base,” Rick Valencia, former president of Qualcomm Life, said in a statement to the press.
The move will allow Qualcomm to reduce its debt levels and to refocus its attention on its core business activities. Markets reacted positively to news of the divestment with Qualcomm’s share price rising by 1.07 per cent to $50.83 per share.
Qualcomm will be a key player in the development of next generation smartphone handsets, with its Snapdragon X50 chip set to be among the key enablers of 5G connectivity.
“We continue to execute on our strategic objectives, including driving the global transition to 5G, protecting the established value of our technology and inventions and expanding into new industries and product categories,” said Qualcomm’s CEO, Steve Mollenkopf.
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