Qualcomm in Talks With Atheros: Report

NEW YORK ( TheStreet) -- Qualcomm ( QCOM) is nearing a deal to acquire semiconductor company Atheros Communications ( ATHR) for $45 per share, according to a story in The New York Times.

The transaction would value Atheros at $3.5 billion, Qualcomm's largest acquisition ever.

Atheros, based in Santa Clara, Calif., makes chipsets for wireless devices like laptops and tablets. The company announced this week two new wireless products to improve the battery life of electronics.

Qualcomm and Atheros have worked together since 2006, via a mobile chip partnership.

Atheros generated profit of $78 million on revenue of $700 million in the last 9 months.

Shares of Atheros jumped 18.1% to $43.60 while shares of Qualcomm rose 0.9% to $50.64.

--Written by Olivia Oran in New York.

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