06 January 2012
Update: Picochip bought by Mindspeed
Picochip bought by Mindspeed
Femtocell specialist Picochip has been bought by Mindspeed Technologies, for approximately $51million, with a potential earnout payment of up to $25m available early in 2013.
According to both companies, the acquisition will create a 'clear market leader' in small cell basestation solutions for next generation mobile broadband communications infrastructure. Together, the companies plan to offer the most comprehensive portfolio of basestation semiconductors.
Alan Taylor, Mindspeed's director of marketing, claimed: "It's a combination of two companies which puts Mindspeed in a leadership position in the small cell market."
He admitted that Mindspeed is being pushed by its customers to offer a platform approach so they can leverage their investment in small cells across the market. Acquiring Picochip has allowed the company to address that issue. "It's a perfect match," he continued, "no other company would have been as good a fit. This gives us a substantial boost."
Providing Picochip's perspective, marketing vp Rupert Baines, pictured, said: "While Picochip had a good presence in 3G, along with a lot of systems expertise and IP, it was competing with large companies. Being part of a NASDAQ listed organisation will give us access to more sales people and more resources. Being part of Mindspeed will magnify our capability." But he believed the deal was not about buying market share. "It's about buying a talented engineering pool."
Baines also believes the deal will allow some of Picochip's 'back burner' ideas to be explored. "The Transcede platform brings a lot of scope for moving some of our ideas up in scale," he said. "We'll be able to do a lot of things that Picochip wouldn't have been able to do on its own."