Atheros Communications, Inc. , the well known developer of advanced wireless, will extend its portfolio by acquiring u-Nav Microelectronics, a company specialized in global positioning system (GPS) chipsets and software that enable mobile location-based products and services.

According to a statement released by Atheros the cash and stock transaction, currently valued at approximately $54 million, includes $15.4 million in cash and 1.28 million shares of Atheros common stock and may include an additional consideration to shareholders if certain defined milestones are achieved.

u-Nav is best known for its uN3010 chip, that integrates the company's CMOS high-performance RFIC core with its third-generation baseband IC core.

Amongst other products, u-Nav has several baseband chips and RFICs, and complete GPS system software solutions providing signal acquisition, tracking, data extraction and GPS navigation.

Through this acquisition, Atheros will enter into the GPS-enabled mobile devices market. According to the analysts, this kind of devices will reach 720 million units in 2011.