Mindspeed Technologies, Inc. (NASDAQ: MSPD), a Newport Beach, CA-based supplier of semiconductor solutions for network infrastructure applications, is to acquire U.K.-based Picochip Limited, a Bath, United Kingdom-based supplier of integrated system-on-chip (SoC) solutions for small cell base stations, for approximately $51.8m.
The transaction, which is still subject to certain closing conditions and is expected to close in the first calendar quarter of 2012, also includes a potential earnout payment of up to $25m payable in the first calendar quarter of 2013.
Led by CEO and president Nigel Toon, Picochip provides semiconductors, software and systems that enable innovative mobile voice and data services.
Together, Mindspeed and Picochip will offer a comprehensive portfolio of base station semiconductor solutions, from residential to enterprise to pico/metro applications. The merger is expected to create a market leader in small cell base station solutions for next generation mobile broadband communications infrastructure.