ACQUISITION OF RIVIERAWAVES

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

ACQUISITION OF RIVIERAWAVES

NOTE 3: ACQUISITION OF RIVIERAWAVES

On July 4, 2014 (the “Closing Date”), the Company acquired 100% of RivieraWaves SAS (“RivieraWaves”), a privately-held, French-based company and a provider of wireless connectivity intellectual property for Wi-Fi and Bluetooth technologies. The Company agreed to pay an aggregate of $18,378 to acquire RivieraWaves with $14,678 paid on the Closing Date and the remaining amount of $3,700 payable upon the satisfaction of certain milestones (the “Contingent Consideration”). During the first quarter of 2015, the Company paid $2,700 of the Contingent Consideration, and the remaining amount of $1,000 is expected to be paid during the remainder of 2015. The Contingent Consideration is recognized as a liability at fair value. As of March 31, 2015, the fair value of the Contingent Consideration was estimated to be $951. Accretion of the Contingent Consideration liability is included in financial income, net.

The acquisition has been accounted in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 805, “Business Combinations.”

In addition, as part of the acquisition, the Company established an employee retention plan for the RivieraWaves employees at a cost of approximately $3,400, to be payable on a semi-annual basis for a period of two years after the Closing Date. As of March 31, 2015, the Company paid $329 of the employee retention plan.