A proposed combination of two Canadian patent licensing companies will make it easier to extract lucrative licensing deals from technology giants, would-be buyer WiLan (WIN.TO) said on Thursday. WiLan, which makes money by developing and licensing intellectual property for the communications and consumer electronics markets, has offered C$38 a share for smaller rival Mosaid (MSD.TO) just as tech majors pay heavily for patents to use as weapons in litigation and cross-licensing. "We strongly believe the combined company will be well positioned to drive future growth on a truly global scale, and drive long-term consistent gains and increase shareholder value," Chief Executive Jim Skippen told analysts on a conference call. The offer values Mosaid, which says all companies that use Wi-Fi technology require a license from it, at C$480 million, a 20 percent premium to the Wednesday closing price.
Wi-LAN Inc. (WiLAN) develops, acquires, and licenses a range of intellectual property that drives products in communications and consumer electronics markets. Shares of WIN fell by 2.23% or $-0.27/share to $11.84. In the past year, the shares have traded as low as $10.76 and as high as $14.40. On average, 6135990 shares of WIN exchange hands on a given day and today's volume is recorded at 3028614.
MOSAID Technologies Incorporated (MOSAID) is a Canada-based company focused on renewal of a semiconductor licensee, expanding the number of licensees to its wireless portfolio and preparing for discussions with licensees to its microcomponent and communications portfolios. Shares of MSD fell by 1.65% or $-0.1783/share to $10.60. In the past year, the shares have traded as low as $9.75 and as high as $11.80. On average, 67255 shares of MSD exchange hands on a given day and today's volume is recorded at 36027.
