FILE PHOTO: A freeway intersection is seen in Pasadena, near Los Angeles, California, U.S., April 20, 2020. REUTERS/Lucy Nicholson/File Photo
(Reuters) -Switzerland's U-Blox Holding, a maker of microchips and software for car navigation, said on Friday it was in talks with Advent International about being taken over by the private equity firm.
"Whether a transaction will materialise is open at this stage," the company said in a statement.
Advent declined to comment.
Bloomberg reported the talks earlier, adding a deal might value U-Blox at more than 1 billion Swiss francs ($1.2 billion).
U-Blox shares were up 19% at 1422 GMT at a three-year high, giving it a market value of about 1 billion francs.
The technology group, which went public in 2007, said last week its first-half loss before interest and tax had reduced to 7.7 million francs from a loss of 28 million a year earlier.
It cited cost cuts and a 32% jump in revenues to 123.4 million francs.
Earlier this year, the company sold a unit making cellular modules for wireless communication to focus on fast-growing navigation and positioning technology used in cars, robots and farm equipment.
Globally, dealmaking is up year-to-date, driven by a quest for growth in corporate boardrooms, falling interest rates in many countries, and the impact of a surge in AI activity.
($1 = 0.8048 Swiss francs)
(Reporting by Ludwig Burger and Emma-Victoria Farr in Frankfurt. Editing by Rachel More and Mark Potter)
