Broadcom To Acquire Bluetooth Chip And Software Developer Zeevo
Irvine, CA -- Broadcom today announced that it has signed a definitive agreement to acquire Zeevo, Inc., a privately-held, Santa Clara, CA-based provider of semiconductor and software solutions for Bluetooth wireless headset products. The acquisition accelerates Broadcom's time to market in the wireless headset market segment, which In-Stat/MDR estimates will grow to nearly 90 million units per year by 2008.
Broadcom is a supplier of Bluetooth hardware and software solutions, offering Blutonium single-chip transceivers and its WIDCOMM software. Broadcom is already established 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 targeting the number-two market segment -- wireless headsets -- as well.
Zeevo has introduced multiple generations of semiconductor and software solutions specifically optimized for the needs of wireless headsets, all of which are shipping in volume production. By combining Broadcom's existing strengths, customer relationships, presence in complementary markets, and Bluetooth solutions with Zeevo's technology and solutions, Broadcom's customers will benefit from a stronger product portfolio, optimized 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 VP of Broadcom's Mobile & 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."
"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 integrated silicon designs and total system solutions have been optimized for use in wireless headset applications and feature 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. 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.
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. The merger transaction is expected to close during Broadcom's current fiscal quarter, which ends March 31. The boards of directors of both companies have approved the merger, which awaits approval by Zeevo's shareholders and other customary closing conditions.
Source: Broadcom