CEVA is buying RivieraWaves, a developer of Wi-Fi/Bluetooth IP for integration within mobile processors. The company is paying $12M up-front; the total price could be $19M following milestone and retention payments.
CEVA, whose mobile DSP core IP business has slumped lately, says the purchase will expand its mobile licensing/royalty revenue base, and also expand its reach into wearable/embedded markets.
The company adds there are already "multiple joint customers deploying RivieraWaves' Wi-Fi IP on a CEVA DSP targeting mobile devices and the connected home."
In an article embargoed until 10:15AM ET Saturday, SA Pro contributor/fund manager Edward Schneider argues CEVA's (CEVA +3.2%) efforts to grow its DSP core IP business within non-mobile markets could lead shares to double within 18 months.
Shares are at the highest levels they've seen since September. They crashed in October due to a Q3 warning.