IRVINE, Calif. -- Broadcom Corp. here today announced plans to acquire Innovent Systems Inc. of El Segundo, Calif., which supplies technologies for radio-frequency ICs, such as Bluetooth devices.
The acquisition will be made with stock, valued at about $440 million. Broadcom said it will issue 3 million shares of Class A common stock in exchange for all outstanding shares of Innovent preferred stock. The transaction is expected to close within 60 days.
"The acquisition of Innovent demonstrates Broadcom's intention to be a formidable competitor in wireless markets worldwide," declared Henry T. Nicholas III, president and CEO of Broadcom. "Integrating Innovent's capabilities in CMOS RF and Bluetooth with our expertise in mixed-signal, home networking, high speed networking and broadband communications technologies provides Broadcom with a powerful platform to address the rapidly growing wireless marketplace."
Year-and-a-half old Innovent claims to have the industry's first fully integrated RF transceiver, fabricated in pure digital CMOS technology. The company's recently introduced Blutonium series of Bluetooth transceivers and systems will extend Broadcom's portfolio in the short-distance wireless segment. The first samples of that device are now being sampled to customers, according to Innovent officials.
"Broadcom's market presence and business infrastructure will accelerate Innovent's ability to bring
our Blutonium line of wireless chips to a market that is eager to implement this technology in real products," said William T. Colleran, president and CEO of Innovent.