In New Delhi: Broadcom, a semiconductor company, has signed a definitive agreement to acquire Percello, a developer of system-on-a-chip (SoC) solutions for femtocells. Used primarily in residential and enterprise business settings, femtocells are small, low power cellular base stations that extend coverage indoors where signals are weak.
According to the official statement, Broadcom expects to pay approximately $86 million, net of cash assumed from Percello, to acquire all of the outstanding shares of capital stock and other rights of Percello. The purchase price will be paid in cash, except that a portion of such purchase price attributable to unvested employee stock options will be paid in Broadcom restricted stock units. The transaction is expected to close in Broadcoms fourth quarter, 2010 or by the end of Broadcoms first quarter, March 31, 2011.
The acquisition of Percello is expected to enable Broadcom to lower overall bill of material cost and accelerate the time to market for best-in-class and energy-efficient femtocell technology.
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