Sony announced on January 26 that it has reached an agreement with Altair Semiconductor and its major shareholders to acquire the company. The purchase price is US$212 million, and Sony expects to complete the acquisition in early February 2016.

Altair, an Israel-based company, owns modem chip technology and related software for LTE, a 4G cellular standard for mobile devices. Altair develops and sells products focused on LTE technology, and its modem chips stand out for their low power consumption, high performance and competitive cost, Sony noted.

LTE is already widely used in data communication for mobile phones, and is also expected to play a pivotal role in the interconnection of the Internet of Things (IoT). With the acquisition of Altair, Sony aims to not only expand Altair's existing business, but also to move forward with R&D of new sensing technologies.

By combining Sony's sensing technologies, such as GNSS (Global Navigation Satellite System) and image sensors, with Altair's modem chip technology, and by further evolving both, Sony will strive to develop a new breed of cellular-connected, sensing component devices, the Japan-based firm said. With the markets for wearable and IoT devices expected to continue to expand, Sony aims to deliver component devices that feature both sensing and communication capabilities, as well as new LTE solutions that leverage the strengths of these component devices.

Sony added that no material impact is anticipated on the company's consolidated financial results for the fiscal year ending March 31, 2016 as a result of this acquisition.