SUNNYVALE, Calif. (AP) — Technology licensor Rambus Inc. said Thursday that it reached a patent license deal with Broadcom Corp. and settled outstanding patent litigation with the chip maker.
Rambus shares shot up more than 8 percent in after-hours trading.
The license agreement, which will last for five years, allows Broadcom to use Rambus’ technology in its integrated circuit products. Rambus did not provide financial terms of the deal.
Rambus added that as part of the litigation settlement the companies resolved Broadcom’s previous use of Rambus’ patents.
Rambus makes most of its money by licensing its technologies to other companies for use in their products. Its shares rose 62 cents, or 8.5 percent, to $7.94 in after-hours trading. The stock had finished regular trading up 15 cents at $7.32.