Broadcom has agreed to acquire Israel-based closely held Provigent for $313m.
The move is expected to improve Broadcom’s capability in handling wireless traffic and broaden its smart phone data traffic handling.
Broadcom is an American supplier of integrated circuits for broadband communications and set-top boxes. It supplies the video processor chip for Apple’s 5th generation iPod and the WiFi+Bluetooth combo chip for Apple iPhone 3GS and iPod touch second generation.
Israel-based Provigent makes chips for microwave backhaul systems. While the chips transmit data over microwave radio links from transmission towers to the backbone network, Broadcom’s chips carry the data through broadband from the towers to the backbone network.
Broadcom said that microwave backhaul makes up more than 50% of systems used to handle mobile data and that together they can target the entire $5-billion market.
The company said that it will acquire all of Provigent’s outstanding shares of capital stock and equity rights. The deal is expected to be completed next quarter.
Broadcom has about 8,900 employees, while Provigent has about 140. None of the employees are expected to be removed as the acquisition is a part of expansion said the company.
