Product category: Communications ICs (Wireless)
News Release from: Broadcom Corp
Edited by the Electronicstalk Editorial Team on 09 March 2005
Broadcom to acquire Zeevo
Broadcom Corp has signed a definitive agreement to acquire Zeevo, a privately-held, Santa Clara-based provider of semiconductor and software solutions for Bluetooth wireless headset products.
Broadcom Corp has signed a definitive agreement to acquire Zeevo, a privately-held, Santa Clara-based provider of semiconductor and software solutions for Bluetooth wireless headset products The acquisition of Zeevo significantly accelerates Broadcom's time to market and competitive position in the wireless headset market segment, which In-Stat/MDR estimates will grow to nearly 90 million units per year by 2008
This article was originally published on Electronicstalk on 19 Oct 2005 at 8.00am (UK)
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Broadcom has established itself as a leading supplier of Bluetooth hardware and software solutions, with its Blutonium single-chip transceivers and its Widcomm software, which is the most widely deployed software in the industry.
Broadcom has already established a leadership position in both the mobile phone and PC segments, which today are considered the first and third largest segments of the Bluetooth market, respectively, according to In-Stat/MDR.
With the acquisition of Zeevo, Broadcom is now aggressively targeting the number two market segment for wireless headsets as well.
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Zeevo has introduced multiple generations of semiconductor and software solutions specifically optimised for the unique needs of wireless headsets, all of which are proven in the market and shipping in volume production.
By combining Broadcom's existing strengths, customer relationships, presence in complementary markets, and proven Bluetooth solutions with Zeevo's technology and innovative solutions, Broadcom's customers will benefit from a stronger product portfolio, optimised total solutions, enhanced support and a more comprehensive roadmap.
"The acquisition of Zeevo speeds our entry into the huge market for Bluetooth headset devices with a dedicated solution that complements our targeted offering of Bluetooth products", said Robert A Rango, Group Vice President of Broadcom's Mobile and Wireless Group.
"Adding the Zeevo solutions rounds out our portfolio as we aim for leadership in the top three segments of the growing Bluetooth market".
Broadcom is a leading supplier of semiconductor solutions for Bluetooth wireless applications and was first to market with a Bluetooth-qualified single-chip radio.
The company's Blutonium line of products includes solutions for both GSM and CDMA mobile phones, notebook and desktop PCs, smartphones and PDAs, as well as application-specific chips for wireless mouse, keyboard and other applications.
Broadcom's Widcomm Bluetooth software is the most popular, feature rich and field proven Bluetooth software in the industry.
"The acquisition of Zeevo by Broadcom opens up a whole new range of exciting products and market opportunities for our home-grown technology", said Jalil Shaikh, President and CEO of Zeevo.
"We look forward to combining our strengths in Bluetooth audio with Broadcom's impressive technology portfolio and creating competitive and innovative solutions for our customers".
Zeevo's highly integrated silicon designs and total system solutions have been optimised for use in wireless headset applications and feature extensive advancements in silicon integration, RF design, acoustical tuning, echo cancellation and other techniques intended to deliver the clearest possible audio experience over a client Bluetooth device.
Adding these products to Broadcom's portfolio enables an immediate market entry for Broadcom with the most competitive solution available in production today.
In addition, the all-CMOS design of Zeevo's chips opens up opportunities for creative integrations, accelerated product roadmaps, and further enhancements in future generations.
"As a leader in the Bluetooth stereo headset market, we consider Zeevo's technology to be state of the art in the industry, which is why we selected them for our products", said Bob Wick, Senior Vice President and General Manager of Logitech Audio and Interactive Entertainment Business Unit.
Zeevo is located in Santa Clara, California and has approximately 50 employees.
In connection with the acquisition, Broadcom will pay a total of $32.0 million - approximately $29.4 million in cash consideration and $2.6 million in restricted stock units that entitle the holder to receive shares of Broadcom Class A common stock as the award vests - in exchange for all outstanding shares of capital stock and other rights, and to satisfy certain outstanding obligations and transaction expenses, of Zeevo.
A portion of the total consideration paid will be subject to escrow pursuant to the terms of the acquisition agreement.
The merger transaction is expected to close during Broadcom's current fiscal quarter, which ends on 31st March.
The boards of directors of both companies have approved the merger, which awaits approval by Zeevo's shareholders and other customary closing conditions.
At closing, Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition.
The amount of that charge, if any, has not yet been determined.
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