Broadcom Corporation to acquire Percello

by CXOtoday Staff    Oct 28, 2010

acquisitionBroadcom (Nasdaq: BRCM), a semiconductors for wired and wireless communications, has signed a definitive agreement to acquire Percello, a developer of system-on-a-chip (SoC) solutions for femtocells. Used primarily in residential and enterprise business settings, femtocells are small, low power cellular base stations that extend coverage indoors where signals are weak.

According to the deal, Broadcom expects to pay approximately $86 million, net of cash assumed from Percello, to acquire all of the outstanding shares of capital stock and other rights of Percello. The purchase price will be paid in cash, except that a portion of such purchase price attributable to unvested employee stock options will be paid in Broadcom restricted stock units. The transaction is expected to close in Broadcom’s fourth quarter, 2010 or by the end of Broadcom’s first quarter, March 31, 2011.

“As wireless data usage continues to expand, this technology is well-positioned to enable wireless carriers to offload both data and voice traffic, while offering subscribers better cell reception in the home and office and accelerating the introduction of new ‘converged’ mobile broadband services,” stated Greg Fischer, VP and GM, Broadcom’s Broadband Carrier Access line of business.

The acquisition of Percello is expected to enable Broadcom to lower overall bill of material cost and accelerate the time to market for best-in-class and energy-efficient femtocell technology.

Shlomo Gadot, CEO, Percello remarked that, “The combination of Percello’s high performance femtocell solutions and Broadcom’s broadband portfolio provides significant benefits including greater efficiencies, accelerated time to market and a world-class technology and engineering talent base.”