The rush to develop and improve GPS capability by semiconductor companies continued Friday as NXP Semiconductors announced that it will acquire fabless semiconductor company GloNav for as much as $110 million.

NXP, which was founded by Philips, has been partially building its expertise in mobile componentry through acquisitions. "Combining GloNav's GPS expertise with NXP's FM Radio, Bluetooth, USB, and NFC leadership enables us to offer a broader connectivity suite to the mobile phone market," said Frans van Houton, NXP Semiconductors CEO, in a statement.

Based in Newport Beach, Calif., GloNav has about 50 employees and contractors in the United States, United Kingdom, Ireland, and Taiwan. Its CEO is Bill McLean. The firm's executives noted that GloNav assets include an intellectual property portfolio and more than "20 years of technology heritage in developing silicon-based GPS solutions."

The companies said the acquisition will enable NXP to access GloNav's single-chip and 90-nm capabilities. GloNav has been funded by Atlantic Bridge Ventures, a European venture capital firm.

NXP said it will purchase GloNav for $85 million in cash, in addition to up to $25 million contingent upon GloNav reaching certain revenue and product milestones.