Broadcom to Acquire a Femtocell Company for $86 Million

Broadcom Corporation has signed a definitive agreement to acquire Percello Ltd., a privately-held company that develops system-on-a-chip (SoC) solutions for femtocells. The acquisition of Percello is expected to enable Broadcom to lower overall bill of material cost and accelerate the time to market for femtocell technology.??

“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,” said Greg Fischer, VP and general manager of Broadcom’s Broadband Carrier Access line of business, in a statement.

In connection with the acquisition, 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 boards of directors of the two companies have approved the acquisition, which 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 customary closing conditions.