Date: 27/10/2010

Broadcom acquire Percello to enhance its femtocell technology

Broadcom Corporation has signed a definitive agreement to acquire femtocell tech expert Percello Ltd. Femtocells are small, low power cellular base stations that extend coverage indoors where signals are weak. The acquisition of Percello is expected to enable Broadcom enhance its femtocell technology.

"Percello's energy-efficient and cost-optimized femtocell architecture augments our portfolio of highly integrated solutions for broadband connectivity and provides significant benefits for our customers and end users," said Greg Fischer, Vice President and General Manager of Broadcom's Broadband Carrier Access line of business. "As wireless data usage continues to expand, this technology is well-positioned to enable wireless carriers to offload both data and voice traffic, while offering subscribers better cell reception in the home and office and accelerating the introduction of new 'converged' mobile broadband services."

"Percello's femtocell technology delivers a simple and cost-effective solution that enables service providers to quickly and easily extend wireless cellular access as well as offering advanced applications and services to their subscribers," said Shlomo Gadot, Chief Executive Officer, Percello. "The combination of Percello's high performance femtocell solutions and Broadcom's broadband portfolio provides significant benefits including greater efficiencies, accelerated time to market and a world-class technology and engineering talent base."

"The femtocell market has turned the corner in 2010 with more than 1 million femtocells global shipments expected by conservative estimates this year. By 2015 we see more than 50 million femtocells being shipped annually with WCDMA femtocells making up the bulk of the market," said Aditya Kaul, Practice Director, Mobile Networks, ABI Research. "This is driven by the consumers' desire to be connected at all times, the need for increased data capacity in networks coupled with wireless service providers deploying fast, simple and cost-effective upgrades to support base stations and accelerate the introduction of advanced services like presence and location based alerts, multimedia syncing and sharing, smart phone applications and enhanced mobile video services to their subscribers."

In connection with the acquisition, Broadcom expects to pay approximately $86 million, net of cash assumed from Percello, to acquire all of the outstanding shares of capital stock and other rights of Percello.


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