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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