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TECHNOLOGY INDUSTRY NEWS
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Broadcom plans to buy Provigent for $313 million

The move will expand the Irvine-based firm's portfolio for the microwave backhaul equipment business.

By OC METRO staffPublished: March 21, 2011 09:52 AM

Irvine-based chipmaker Broadcom has inked a deal to acquire Provigent for $313 million in an effort to expand its portfolio for the microwave backhaul equipment business.

Provigent operates international offices in Israel and a U.S. base in Santa Clara. The privately held company makes chips for the broadband wireless transmission industry and offers mixed-signal semiconductors for microwave backhaul systems. Under the deal, Broadcom will gain access to Provigent's microwave transmission technology.

This comes at a time when the need for such technology has expanded as more wireless carriers switch to fourth-generation, or 4G, service.

"In order to manage the exponential growth in wireless traffic and transition to 4G, carriers are faced with the challenge of backhauling data from the cell sites to the core network," according to Broadcom.

The company said microwave backhaul is the "most prevalent" technology used in the global mobile backhaul business.

"Provigent is a unique asset with world-class microwave backhaul technology and strong engineering talent developing innovative and highly integrated semiconductor solutions for the microwave segment," said Rajiv Ramaswami, executive vice president and general manager of Broadcom's Infrastructure and Networking Group. "Combining their microwave backhaul solutions with our industry-leading network infrastructure and wireless solutions allows us to better serve our customers and expand our addressable market."

Broadcom makes semiconductors that allow for the delivery of voice, video, data and multimedia in home, office and mobile applications. The company had revenue of $6.8 billion last year.

"Provigent's System-on-Chip (SoC) solutions are used to solve a crucial problem in the infrastructure of cellular networks, which is the backhaul bottleneck," said Dan Charash, CEO of Provigent. "The many synergies with Broadcom's broad portfolio of wireline and wireless SoC technologies and capabilities will accelerate product development and provide our customers with a compelling offering."

The deal is slated to close in the second quarter.

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