Communications chip developer Broadcom is to acquire Zyray Wireless in a deal worth $96 million.
Under the terms of the deal, Broadcom will exchange 2.23 million shares of its Class A common stock (with a value of $96 million) for 100% of all the outstanding shares of Zyray’s capital stock.
In addition, Broadcom will cancel the $3 million in convertible notes of Zyray that it holds through an earlier investment in the company.
The deal brings together two companies that offer complementary technologies in the telecommunications marketplace.
For its part, Zyray Wireless has developed the Spinnerchip – an add-on WCDMA baseband processor that enables handset manufacturers to develop single-mode WCDMA, dual-mode GPRS/GSM & WCDMA and tri-mode EDGE/GPRS/GSM & WCDMA devices.
Coupling the SPINNERchip technology with Broadcom’s single-chip EDGE/GPRS/GSM and GPRS/GSM baseband processors will allow Broadcom to offer a two-chip WCDMA phone combination.
And it will provide the opportunity for the company to integrate the functionality of both devices onto a single chip at some point in the future.