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Gigle goes to Broadcom for $75M

Posted: 26 Nov 2010 ?? ?Print Version ?Bookmark and Share

Keywords:SoC? home networking? powerline?

Broadcom Corp. reports it will acquire Gigle Networks Inc., a privately-held company that 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.

Broadcom will pay $75 million for the Spanish company which develops 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.

The acquisition complements Broadcom's portfolio of wired and wireless solutions for the home. It is expected to let Broadcom offer additional functionality in STB, broadband carrier access and wireless router applications.

The acquisition will also speed Broadcom's time to market for, 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 to allow the streaming of multiple HD 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 acquisition has been approved by the shareholders of Gigle Networks and the boards of directors of the two companies. The transaction is expected to close Q4 2010 and remains subject to customary closing conditions.

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