Sasken Communication surges on settlement with Spreadtrum

Sasken Communication Technologies has surged 20% to Rs 379 on the BSE after the company announced that it has reached a settlement with Spreadtrum Communications Inc. and Beijing UniSpreadtrum Technologies in connection with the unauthorized use of Sasken’s Protocol Stack IP, by the said companies.

Spreadtrum will pay Sasken $ 45 million as damages/compensation before March 31, 2016 towards this settlement. The formal settlement document is expected to be finalized in the next few days.

This settlement brings an end to the ongoing arbitration and terminates all ongoing obligations of the parties under the relevant agreements, Sasken Communication said in a statement.

At 10:02 AM, the stock was up 17% at Rs 369 on the BSE. The trading volumes on the counter jumped an over 10-fold with a combined 594,824 shares changed hands on the BSE and NSE.