LONDON – Broadcom Corp. has announced that it has agreed to pay $75 million in cash to acquire Gigle Networks Inc., a privately-held company that develops system-on-a-chip (SoC) solutions for home networking over power lines.
About $8 million in cash will be reserved for future payment to the former holders of Gigle Networks capital stock and other rights upon satisfaction of certain performance goals.
Gigle Networks (Barcelona, Spain), founded in 2005, offers powerline networking technology that is HomePlug AV certified and is designed to be compliant with the IEEE 1901 standard for high-speed powerline communications.
This complements Broadcom's portfolio of wired and wireless solutions for the home. It should allow Broadcom offer additional functionality in set-top box, broadband carrier access and wireless router applications.
The acquisition will also accelerate Broadcom's time to market for G.hn, a draft specification for existing-wire home networking, developed under the International Telecommunication Union.
"The worldwide market has demanded technologies for powerline, co-ax and wireless networking using standards such as Wi-Fi, MoCA, HomePlug AV, IEEE 1901 and G.hn to allow the streaming of multiple high definition and 3D video streams," said Jason Blackwell, an analyst with ABI Research in a statement issued by Broadcom. "With electric outlets readily available around the home, more consumers are seeing the benefits of powerline, and service providers' increased push toward gateways and IPTV is expected to help increase the market at a 32 percent compound annual growth rate from 2010 to 2015."
The shareholders of Gigle Networks and the boards of directors of the two companies have approved the acquisition. The transaction is expected to close in the fourth quarter of 2010 and remains subject to customary closing conditions.
I believe PLC could grow up soon because it gives conveniences to end users and main vendors already joined. I appreciate to have a new job regarding the product.
I was an field application engineer (F/W&H/W) before, now I am a sales leader in Taiwan. firstname.lastname@example.org
@jakmal, Joe, @sdfs, thank you all for info...interesting market segment, Atheros, Marvel, and Broadcom fight many other larger battles in wireless space for example...I don't know much about LME in Shenzhen and Sigma Designs, do they have non-PLC products?...I think Maxim is also making some PLC chips...does anyone know approximate market size for PLC silicon? Kris
Gigle was formed from ex-DS2 people, hence the Spanish connection. DS2's assets were acquired by $MRVL (see http://bit.ly/9RppA8 and http://bit.ly/fLEKRt). A chunk of Sigma/CopperGate's PLC operation came from $CNXT. Other PLC companies include Arkados and Spidcom.
I believe DS2 was purchased by Marvell.
Over the last few years, most PLC startups have been acquired by bigger companies.
1. Intellon (they went public before the acquisition) : Atheros
2. DS2 : Marvell
3. Gigle : Broadcom
4. CopperGate : Sigma Designs
I am not aware of any independent PLC company right now. More information in the news piece about this market would be great :)
Ganesh @ AnandTech
Power Line Communication - a minor player in wireline technology portfolio is finally getting some attention...Gigle Networks 5 years on the market being aquired by a major player, that is significant...interesting enough Gigle is based in Spain which house another PLC player DS2 although I think DS2 is suffering now...does anyone know any other PLC companies in the world? Kris
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