DSP solutions provider Ceva Inc. (Nasdaq:CEVA); LSE:CVA) has acquired RivieraWaves for $19 million. RivieraWaves is a privately held company and provider of wireless connectivity IP for Wi-Fi and Bluetooth technologies.
French company RivieraWaves expands Ceva's licensing and royalty revenue base in its existing markets: including smartphones, tablets and small cells, and extends the company's market reach to include emerging markets such as wearables, the smart home, connected cars and the Internet of Things (IoT). Collectively, Ceva's addressable market is expected to exceed 35 billion connected devices by 2020, according to ABI Research.
Ceva and RivieraWaves have successfully collaborated to address the Wi-Fi market for the last two years. The companies already have multiple joint customers deploying RivieraWaves' Wi-Fi IP on a Ceva DSP targeting mobile devices and the connected home. Ceva CEO Gideon Wertheizer said,"RivieraWaves in an excellent acquisition fit for Ceva, enabling us to further expand into the connectivity IP space with production-proven leading-edge technologies, including the most advanced standards in Wi-Fi and Bluetooth. We have witnessed first-hand the strong competency, innovative technology and customer traction that the RivieraWaves team has managed to achieve to date and warmly welcome the team to the Ceva family." Under the terms of the agreement, Ceva will make an initial payment of about $12 million at closing with the remaining $7 million payable upon satisfaction of certain performance and other milestones as well as a two year retention plan for the current RivieraWaves' employees.
Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2014
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