Broadcom (Nasdaq: BRCM) is beefing up its powerline networking capabilities with an agreement to acquire system-on-a-chip vendor Gigle Networks for about $75 million.
Already well entrenched in the cable and telco DSL home networking CPE space, the acquisition of Gigle enables Broadcom to extend powerline capabilities to the broadband home networking vendors that make set top boxes, broadband gateways and wireless routers.
Another benefit of the Gigle acquisition is that Broadcom gains expertise from a vendor that's already compliant with the IEEE 1901 powerline standard. Having a standards compliant powerline property under its belt means that Broadcom can instantly target customers that are developing powerline-based home networking products.
In addition to expanding its powerline capabilities, the acquisition will bolster Broadcom's entry into the emerging G.hn, an all-inclusive home networking wiring standard that can run over coax, home phone lines, Ethernet, and powerline.
Already approved by the shareholders and boards of both companies, Broadcom expects to close the deal after meeting customary closing conditions in Q4 2010.
- see the release
- FierceCable also gives its take
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