Broadcom Corporation has announced acquisition of Beceem Communications, a privately-held company that is a provider of 4G wireless platform solutions.
Broadcom Corporation has announced acquisition of Beceem Communications, a privately-held company that is a provider of 4G wireless platform solutions. Beceem has already announced a 4G multimode platform that can support both LTE and WiMAX 4G networks. Supporting peak broadband download speeds of up to 200Mbps.
According to company statement, 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 it’s combined customers to accelerate the market availability of highly integrated, lower cost 4G wireless broadband devices.
“The combination of Beceem and Broadcom creates a leader in providing multimode wireless connectivity solutions to service providers and equipment manufacturers around the world,” said Scott Bibaud, Broadcom’s Executive Vice President & General Manager of the Mobile Platforms Group.
In connection with the acquisition, Broadcom expects to pay approximately $316 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of Beceem. The purchase price will be paid in cash, except that portion attributable to unvested employee stock options will be paid in stock options exercisable for shares of Broadcom’s common stock. The boards of directors of the two companies have approved the merger. The transaction is expected to close in Broadcom’s fourth quarter, 2010 or by the end of Broadcom’s first quarter, March 31, 2011 and remains subject to the satisfaction of regulatory requirements and other customary closing conditions.