Broadcom to Acquire Closely Held Provigent for $313 Million
Broadcom Corp. (BRCM), the biggest maker of chips for television set-top boxes, agreed to buy closely held Provigent for $313 million, increasing its ability to handle wireless traffic.
The Irvine, California-based company will acquire all of Provigent’s outstanding shares of capital stock and equity rights, it said in a statement today. The deal is expected to be completed next quarter.
Provigent, which makes semiconductors for microwave backhaul systems, will help Broadcom handle data as more wireless devices use so-called fourth-generation services, or 4G. Microwave backhaul makes up more than 50 percent of systems used to handle mobile data, Broadcom said.
Broadcom rose 84 cents, or 2.1 percent, to $40.51 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have fallen 7 percent this year.
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net.
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