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(photo credit: Channel 10)
US chipmaker Broadcom (BRCM.O) is buying Israeli chip developer Provigent Inc for $313 million to gain access to its microwave transmission technology.
"With the addition of Provigent's engineering expertise in microwave radio products, the company expands its robust portfolio to more thoroughly address the $5 billion microwave backhaul equipment business," Broadcom said on Monday.
Provigent develops system-on-a-chip products that enable wireless system
vendors to deliver broadband wireless backhaul systems to network
operators. Backhaul is the portion of a network that links the core
network to smaller networks.
To manage growth in wireless traffic and transition to fourth-generation
technology, carriers are faced with the challenge of backhauling data
from cell sites to the core network. Microwave backhaul is the most
prevalent type of technology used in the mobile backhaul business,
representing more than 50 percent of all solutions.
Broadcom said it expected the acquisition to be neutral to earnings in
2011. The transaction was expected to close in Broadcom's second
Provigent has raised $55 million from such venture capital firms as Sequoia, Lightspeed and Israel's Pitango.