Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of smartphone chip maker Spreadtrum Communications (NASDAQ:SPRD) popped 13% today after Chinese state-owned company Tsinghua Unigroup agreed to acquire it for about $1.8 billion.

So what: The all-cash deal values Spreadtrum at $31 per American depository receipt and represents a premium of 17% to its closing price on Thursday. Of course, the offer is also a 9% bump from the preliminary bid of $28.50 that Tsinghua made last month, suggesting that Tsinghua is pretty confident in the smartphone tailwinds working in Spreadtrum's favor.

Now what: While the buyout still needs approval from shareholders and other regulatory bodies, Spreadtrum management is optimistic that the deal will go through. "The acquisition by Tsinghua will provide investors with significant returns, and position the Spreadtrum business for continued growth," said Spreadstrum Chairman and CEO Dr. Leo Liyou Li. "In short, we feel this transaction is favorable to Spreadtrum shareholders, and unlocking potential value otherwise hidden in the assets of Spreadtrum." Of course, with Spreadtrum shares likely all popped at this point, close rivalĀ Infineon Technologies might be an alternative smartphone play worth considering.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.