Broadcomm to buy Becreem

Broadcom has announced it has signed an agreement to acquire Beceem, which it says will enable it to push forward with 4G, WiMax and LTE at lower costs to customers.

It has said that by purchasing the company it will be able to work with Beceem employees to develop 4G  as well as sell the technology to equipment providers and operators.

“When combined with Broadcom’s 3G/2G cellular solutions, wireless LAN, Bluetooth, GPS, Ethernet switching and other associated IP, Beceem’s 4G technology will enable our combined customers to accelerate the market availability of highly integrated, lower cost 4G wireless broadband devices,” Broadcom says.

This may be a partnership made in heaven considering Beceem announced the “industry’s first” -here we go again – 4G multimode platform that can support both LTE and WiMAX 4G networks and give peak broadband download speeds of up to 200Mbps.

According to the Global Semiconductor Alliance, 132 operators in 56 countries are investing in, and are expected to deploy LTE, while WiMAX has already been deployed in over 550 networks in 148 countries.

Broadcom expects to pay approximately $316 million in cash to acquire all of the outstanding shares of capital stock and other equity rights of Beceem.  

The cash purchase does not include unvested employee stock options.  A portion of the cash payable to the stockholders will be placed into escrow pursuant to the terms of the acquisition agreement.  

Scott Bibaud, Broadcom’s executive vice president and general manager of the mobile platforms group, said:  “Beceem’s talented teams of engineers in India and the U.S. have been focused on enabling a 4G ecosystem of operators and equipment manufacturers to drive the deployment of 4G networks. We look forward to adding their innovative technologies to our product portfolio and providing these technologies to our customers.”