Provigent Ltd., run by founder and CEO Dan Charash, is being acquired by Broadcom Corporation (Nasdaq: BRCM) at a company value of $360 million. As "Globes" reported earlier this month, Provigent has also been in acquisition talks with other semiconductor companies, and also considered a Nasdaq IPO as the primary market recovered.
Broadcom expects to pay about $313 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of Provigent. The purchase price will be paid in cash, except part that is related to certain employee stock options will be paid in Broadcom restricted stock units.
Provigent is a fabless semiconductor company that develops system-on-a-chip (SoC) solutions for the broadband wireless transmission industry. Charash and Guy Reshef founded the company. It has been in acquisition talks for several months. The company operates in the hottest sector in the wireless network equipment sector - the bottleneck between antennas and the network core. The company's SoC solutions function as a kind of modem for routing and transmitting data.
Broadcom infrastructure and networking group general manager Rajiv Ramaswami said, "Provigent is a unique asset with world-class microwave backhaul technology and strong engineering talent developing innovative and highly integrated semiconductor solutions for the microwave segment. Combining their microwave backhaul solutions with our industry leading network infrastructure and wireless solutions allows us to better serve our customers and expand our addressable market."
Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2011
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