Qualcomm to spin off Retail Solutions subsidiary
02 May 2014 | Sophie Donoghue
US smartphone chipmaker Qualcomm has announced plans to spin off location based services subsidiary Retail Solutions, as an independent company.
The news follows the completion of an agreement between Qualcomm and a group of third party investors, which will give them a controlling stake in the spin-off company.
The firm, which will be renamed Gimbal, is a proximity platform which is designed to allow brands, and retailers to engage consumers with relevant, timely and targeted communications.
Qualcomm is expected to invest an undisclosed sum into Gimbal, allowing it to keep a stake in the firm.
“Enabling proximal, contextually relevant experiences is an important element of our vision to bridge the digital and physical worlds across retailing, advertising, social networking and other use cases, and Gimbal, is well positioned to continue to drive industry leadership,” said Derek Aberle, president of Qualcomm.
“Qualcomm often serves as a catalyst for creating businesses and technology that enable new and unique user experiences.”
The deal is expected to be completed by the end of May 2014.
At the end of January this year, Qualcomm reported positive financial results, raising its 2013 outlook after beating Wall Street expectations to establish a lead in 4G wireless technologies.