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Broadcom to Buy Beceem for $316M

By Staff Author | October 13, 2010

Semiconductor company Broadcom plans to buy LTE and WiMAX chipmaker Beceem for $316 million.

The acquisition will strengthen Broadcom’s presence in the 4G space by combining Broadcom’s 3G/2G cellular solutions, wireless LAN, Bluetooth, GPS and Ethernet switching with Beceem’s WiMAX and LTE technology.

“When combined with Broadcom’s 2G and 3G cellular solutions and broader wired and wireless communications portfolio, our 4G products will enable operators to roll out next generation wireless broadband solutions while providing support for existing networks,” Beceem CEO Surendra Babu Mandava said in a press release. “Our combined offering will be one of the most extensive and formidable in the industry.”

The Global Semiconductor Alliance estimates that about 132 operators are expected to deploy LTE, while WiMAX already has been deployed in more than 550 networks.

“The combination of Beceem and Broadcom creates a leader in providing multimode wireless connectivity solutions to service providers and equipment manufacturers around the world,” said Scott Bibaud, general manager of Broadcom’s mobile platforms group. “We look forward to adding their innovative technologies to our product portfolio and providing these technologies to our customers.”

The boards of directors of the two companies have approved the merger, which must pass regulator muster before closing. The acquisition is expected to close in the fourth quarter of this year or by the end of Broadcom’s first quarter, March 31, 2011.


Filed Under: Carriers

 

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