Mindspeed Technologies to Take Over Picochip

U.K.-based Picochip Limited, a company supplying integrated system-on-chip (SoC) solution for small cell base stations, will soon be taken over by Mindspeed Technologies (News - Alert), Inc., supplier of semiconductor solutions for network infrastructure applications.

This new deal will enable both the companies to further strengthen their presence in small cell base station solutions for next generation mobile broadband communications infrastructure.

Both the companies will jointly offer the base station semiconductor solutions on the market, from residential to enterprise to pico/metro applications.

Mindspeed also plans to channelize its multi-mode 3G/4G solutions to the market to capitalize on the rapid acceleration of the small cell wireless base station market, while also addressing comprehensive support for all 3G and 4G global air interface standards.

“Our acquisition of Picochip establishes our position as a global leader in wireless infrastructure semiconductor solutions for next generation mobile broadband communications,” said Raouf Y. Halim, chief executive officer of Mindspeed.

He said that it’s a great strategic fit for several reasons, at first, it positions Mindspeed as the clear leader in small cell base station technology with the industry's broadest small cell product offering, addressing a significantly expanded market opportunity of $3.0 billion by 2016. Second, it enhances our competitive position as they join their respective 3G/4G technologies to offer single- and multi-mode solutions.

Nigel Toon, chief executive officer and president of Picochip, said that Mindspeed is the ideal acquirer for them and together they have valuable technology and customer synergies, given Picochip's carrier-qualified 3G wireless technology leadership with over 70 percent market share in 3G/high-speed packet access (HSPA) and Mindspeed's proven pathway as the long-term evolution (LTE (News - Alert)) small cell pioneer with the Transcedeproduct family.

“Our combined resources create one of the largest SoC development groups in the wireless infrastructure sector with complementary intellectual property scale and expertise to deliver the solutions that this fast-moving market demands,” Toon added.

Both companies have inked a definitive agreement and Mindspeed Technologies has agreed to pay approximately $51.8 million, plus a potential earn out payment of up to $25 million payable in the first calendar quarter of 2013 to Picochip.

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