Broadcom to Buy Femto Chip Startup for $86M
The planned buyout comes after the chip-maker announced earlier this month that it will buy Beceem Communications Inc. for US$316 million. (See Broadcom to Buy a 4G Strategy Via Beceem.)
Buying the Israeli femto startup will continue to enhance Broadcom's Long Term Evolution (LTE) strategy while adding small-cell technology to its portfolio. Percello has developed 3G system-on-a-chip (SOC) technology for femtocells and is working on LTE for home basestations. (See T-Mobile Backs Femto Chip Startup and Percello Intros HSPA+ Femto SoC.)
Broadcom could also potentially integrate femtocell technology with some of its own home gateway smarts. The firm now offers a number of reference designs for home gateways.
The move to take Percello puts Broadcom directly in competition with UK-based femto SOC-maker Picochip , which now has its own HSPA+ and LTE home base station silicon designs.
Broadcom says it expects to close the acquisition by the end of March 2011.
— Dan Jones, Site Editor, Light Reading Mobile