According to Light Reading Mobile's source, the price of the deal for the Israel-based company is expected to be US$80 million, plus up to $20 million more depending on post-acquisition performance.
DesignArt specializes in system-on-chip (SoC) technology and software platforms for LTE small cells that have integrated backhaul capabilities. The acquisition would signal that Qualcomm wants to make a bigger push into small cells, particularly those that can be deployed for public access to boost mobile data capacity. (See Small-Cell Startup Goes Big On Backhaul and Chip Startup Spurs Small-Cell Backhaul .)
Founded in 2006, DesignArt has not disclosed how much funding it has raised to date from its investors Carmel Ventures , Magma Venture Partners and Motorola Solutions Venture Capital (formerly Motorola Ventures).
The acquisition, should it be completed, would be the latest in a wave of small-cell chipset consolidation deals: Mindspeed Technologies Inc. (Nasdaq: MSPD) acquired Picochip for $51.8 million in January this year; and Broadcom Corp. (Nasdaq: BRCM) bought Percello Ltd. for $86 million in October 2010 as well as microwave backhaul startup Provigent Inc. for $313 million in March 2011. (See Mindspeed Snaps Up Picochip for $51.8M, Broadcom to Buy Femto Chip Startup for $86M and Broadcom Buys Into Microwave Backhaul.)
- CTIA 2010: Qualcomm Snags First Femto Wins
- Qualcomm Dishes New Femto Details
- Broadcom vs. Qualcomm Goes Femto
- Challengers Shake Up LTE Chips
- More Startups Target Small-Cell Backhaul
— Michelle Donegan, European Editor, Light Reading Mobile