Broadcom (Nasdaq:BRCM) has announced to the SEC that two months ago, it completed the acquisition of start-up M-Stream for $8.6 million in cash and 27,000 in shares, of which Broadcom had already injected $800,000 in cash.
M-Stream was founded in 2001 by CEO Arie Heiman. Heiman had been CEO of Nogatech before it was sold to Zoran Microelectronics (Nasdaq:ZRAN) for $170 million three months after going public on Nasdaq in May 2000.
Upon its founding, M-Stream raised $150 million from Broadcom, which received a 20% stake in the start-up and Applied Materials Ventures, which received 40%. The investment was the first in Israel for Applied Materials Ventures, and today's announcement marks its first exit. Heiman apparently owns the remaining 40%, and will pocket a $3.5 million gain, while Applied Materials Ventures will record $2.7 million in capital gains.
M-Stream develops technologies that enhance cellular communications for 2, 2.5 and 3-generation networks.
Two weeks ago, Broadcom announced that it has signed a definitive agreement to acquire Zyray Wireless Inc., a provider of baseband co-processors for WCDMA (wideband code division multiple access) mobile devices for $99 million, of which $96 million was in shares and $3 million was through a cancelled debt. Zyray is a competitor of Israel's Modem-Art.
In May, Broadcom completed its acquisition of WIDCOMM Inc., a provider of software solutions for Bluetooth wireless products, for $49 million in cash, and in April it acquired Sand Video Inc. for $85 million in cash and shares.
Published by Globes [online] - www.globes.co.il - on Monday, June 28, 2004