Broadcom buys Renesas’ LTE modem business for $164million
1 min read
Following its announcement on 27 June that it was pulling the plug on its 4G wireless modem business, Renesas has sold the unit to Broadcom in a deal valued at $164million.
The acquisition covers all issued shares in Renesas Mobile Europe and Renesas Mobile India as well as 'certain assets; related to the LTE modem technology.
In a statement, the company said the transaction would enable it to withdraw quickly from the LTE modem business and focus more closely on its core business.
From Broadcom's perspective, it says it is gaining a dual core LTE SoC that is ready for volume production and which has been validated by leading global operators. The acquisition adds what it says are 'quality patents and applications' to its IP portfolio and brings some of the world's most experienced cellular engineers.
"Today's transaction firmly establishes Broadcom's presence in the rapidly growing LTE market with a production ready, carrier validated SoC," said Scott McGregor, pictured, Broadcom's president and ceo.
Renesas bought the wireless modem technology from Nokia in 2010 for $200m in a move to strengthen its position in the market. However, 'tougher than expected' market conditions and the need to concentrate on its core business saw the unit become surplus to requirements.
