Semiconductor technology manufacturer Mindspeed Technologies acquired PicoChip, a UK-based developer of semiconductor and signal processing mobile voice and data technology, on Thursday, for $51.8m with a $25m payout to potentially to come in the first quarter of 2013.
Mindspeed had previously raised about $110.5m over half a dozen rounds from semiconductor manufacturer Intel’s corporate venturing unit, electronics conglomerate Samsung, telecommunications corporation AT&T, financial services firm Rothschild Gestion, venture capital (VC) firms Atlas Venture, Highland Capital Partners and Scottish Equity Partners, and VC fund Pond Ventures
The $51.8m sum will consist of a $27.5m cash payment and $24.3m in new common stock equating to about 15% of Mindspeed’s outstanding shares.
Post-acquisition, Mindspeed is looking to provide the most comprehensive range of base station semiconductor products on the market, and has cited research estimating that the market for small cell base station shipments will grow to $3bn by 2016.
Additionally, the synergy of both firms’ operations and technology will allow for a multitude of opportunities to cross-sell products to each company’s existing customer base.
Raouf Y. Halim, chief executive officer of Mindspeed, said: "[Our acquisition of Picochip] gives us the scale to lead the industry’s move toward fixed/mobile broadband convergence, a trend which we believe will drive revenue and earnings growth for Mindspeed in the future."