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Broadcom to snap up Zeevo for US$32 million
US fabless chip maker Broadcom has signed a definitive agreement to acquire Zeevo, a privately-owned Santa Clara-based provider of semiconductor and software solutions for Bluetooth wireless headsets.
US fabless chip maker Broadcom has signed a definitive agreement to acquire Zeevo, a privately-owned Santa Clara-based provider of semiconductor and software solutions for Bluetooth wireless headsets.
Under the deal, Broadcom will pay US$32 million – made up of $29.4 million in cash and $2.6 million in restricted stock units – to buy Zeevo. .
The transaction is expected to close during Broadcom's current fiscal quarter, which ends March 31. The boards of both companies have approved the merger, and are now awaiting approval from Zeevo's shareholders and other customary closing conditions. .
Buying Zeevo is a key part of Broadcom’s plan to cash in on the strong growth forecast for the wireless headset market segment. It is estimated that almost 100 million wireless headsets will be sold each year by 2008. .
"The acquisition 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 Rango, group vice president of Broadcom's mobile and 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." .
Zeevo chief executive officer Jalil Shaikh said the deal wouid be good for Zeevo because "it opens up a whole new range of exciting products and market opportunities" for the company’s technology. .
"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."
Under the deal, Broadcom will pay US$32 million – made up of $29.4 million in cash and $2.6 million in restricted stock units – to buy Zeevo. .
The transaction is expected to close during Broadcom's current fiscal quarter, which ends March 31. The boards of both companies have approved the merger, and are now awaiting approval from Zeevo's shareholders and other customary closing conditions. .
Buying Zeevo is a key part of Broadcom’s plan to cash in on the strong growth forecast for the wireless headset market segment. It is estimated that almost 100 million wireless headsets will be sold each year by 2008. .
"The acquisition 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 Rango, group vice president of Broadcom's mobile and 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." .
Zeevo chief executive officer Jalil Shaikh said the deal wouid be good for Zeevo because "it opens up a whole new range of exciting products and market opportunities" for the company’s technology. .
"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."
