Leading chipmaker Broadcom Corporation (BRCM) acquired privately held Beceem Communications Inc. for $316 million.
Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects the acquisition of Beceem to be neutral to its bottom-line in 2011.
Beceem is a leading provider of 4G semiconductors and offers a number of single-chip solutions that are optimized for mobile devices and wireless broadband markets. Fueled by the broadband communications explosion, Broadcom has enjoyed robust growth since its inception.
Broadcom has been interested in expanding in the wireless market, primarily in the 2G and 3G spaces. The acquisition of Beceem will certainly accelerate Broadcom's time-to-market in 4G. The combination of Broadcom's 3G/2G cellular solutions, wireless LAN, Bluetooth, GPS, Ethernet switching and other associated IP with Beceem's 4G technology will provide customers access to a wide portfolio of broadband devices.
To meet the growing demand for bandwidth and content, service providers around the world are rolling out next-generation 4G networks. Beceem's solutions address both LTE and WiMAX, the two standards associated with 4G cellular services. The 4G multimode platform of Beceem supports both LTE and WiMAX 4G networks. This technology can support broadband download speeds of high density, thereby enabling mobile broadband connectivity for smartphones, mobile computing, consumer electronics products and wireless gateways.
Most recently, Broadcom announced that it will acquire privately-held Gigle Networks Inc. for $75 million. Gigle Networks develops system-on-a-chip (SoC) solutions for home networking over power lines.
Last week, Broadcom completed the acquisition of privately-held Percello Ltd for $86 million. Percello develops SoC solutions for femtocells. Femtocells are low-power wireless access points that operate in licensed spectrum to connect standard mobile devices to a mobile operator’s network using residential DSL or cable broadband connections.
Along with strengthening its product portfolio, these acquisitions make good use of the solid cash balance of $2.4 billion that Broadcom possessed at the end of the third quarter.