Broadcom buys Israeli 5G co MagnaCom for $60m

Broadcom Photo: Reuters

The Petah Tikva based company has developed 5G technology to alleviate congestion and satisfy bandwidth demand.

Semiconductor connectivity giant Broadcom has acquired Israeli startup MagnaCom, which develops 5G wireless communications technology. A spokesman for MagnaCom has confirmed the acquisition for "Globes" but did not disclose financial details about the deal. Market sources believe that Broadcom is paying $60 million for the Petah Tikva based company.

Broadcom, which was recently acquired by Singapore's Avago, has a market cap of $56 billion and has 8,200 employees worldwide including 700 in Israel, resulting from a dozen previous acquisitions in the country.

MagnaCom was founded in 2012 by CEO Yossi Cohen and CTO Amir Eliaz and has raised $8 million to date. The company has 20 employees.

The company was founded around a whole new, patented modulation technology called WAM, which can help alleviate the global spectrum congestion and insatiable demand for more bandwidth. WAM can be adapted in cellular, Wi-Fi, satellite and cable TV, wireless backhaul, cable and DSL modems, long and short haul fiber and numerous other applications.

Some 15 Israeli technology companies have been sold in 2016 for $1.7 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Broadcom Photo: Reuters
Broadcom Photo: Reuters
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