Wednesday, October 13, 2010

Broadcom To Pay $316 Million For 4G Chip Maker Beceem

IRVINE, Calif., Oct 13, 2010: Broadcom Corp. announced it will pay $316 million to acquire a closely held provider of fourth-generation semiconductors used to help power products for both the LTE and WiMax networks.

Broadcom--whose chips are used to power Apple Inc.'s (AAPL) iPad as well as to send data in cellphones, home networks and across wireless infrastructure--has been reporting strong revenue growth on demand for electronic devices.

Buying Beceem Communications Inc. (Surendra Babu Mandava, CEO & founder) gives Broadcom the ability "to accelerate the market availability" of integrated, low-cost 4G devices, Broadcom said.

"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," said Beceem Chief Executive Surendra Babu Mandava.

Clearwire Inc. (CLWR) is operating a 4G network in the U.S. and Verizon Wireless anticipates its system handling users next year.

Broadcom expects the deal to not impact its bottom line next year, excluding deal-related charges. The purchase should close around year end.
About Beceem
Beceem is the leading provider of 4G semiconductors and offers a number of single-chip solutions optimized for mobile devices and wireless broadband markets. Beceem's products are WiMAX certified, power the CLEAR and NOQ networks in the United States and are validated against WiMAX base stations from all major OEMs.
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