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Broadcom to acquire Renesas LTE modem business
2013-09-04 15:44:00| Telecompaper Headlines
(Telecompaper) Broadcom has agreed to acquire Renesas Electronics' LTE modem business for USD 164 million. Renesas announced earlier this year plans to withdraw from the mobile market, after seeing a sharp drop in volume after it acquired Nokia's chip business. Broadcom said the deal will help it accelerate development of its first multi-mode LTE SoC, which is expected to launch in early 2014. The acquisition includes a dual-core LTE SoC that is ready for volume production and has been validated by operators in North America, Japan and Europe. Broadcom also receives patented technology and experienced engineers in multimode, multiband, LTE-A/HSPA+/EDGE modems, including support for emerging features such as carrier aggregation and VoLTE. The loss-making activities will weigh on Broadcom's earnings in the near term, but it expects to have the business breakeven by the second half of 2014 and turning an adjusted profit in 2015. The takeover is expected to close early in the fourth quarter.
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Category:Telecommunications