Denver, CO, 06/10/2014 (Stocksntrade) – Broadcom Corporation (NASDAQ:BRCM) had recently quit from its baseband market thus saving $700 million in a year to focus on its failing stock market. The global semiconductor giant has now acquired Ittiam Systems’ business unit that is based in Bangalore, India. This deal owes its conception to the failing Wi-Fi speeds that has let the company as a whole, down. Now with this acquisition the company has acquired its IP addresses for faster accessibility along with a fantastic team of 32 employees who are now a part of Broadcom. Ittiam Systems is a small start-up company with a work brigade of 250 employees and has licensed its IP for an estimated $500,000 as reported by Economic Times.
Ittiam Technologies Systems
This acquisition follows the same pattern of Qualcomm buying 2 IPs from Mango Technologies, India, in 2010. Ittiam has got its IP address embedded in millions of tablets, smart-phones, Wi-Fi chipset devices and video communication devices. This company was founded in the year 2001 by Mr.Srini Rajam who functioned as MD of Texas Instruments India before that.
Broadcom Market Presence
From the time this deal has been announced, combined with Broadcom’s renouncement of basebands, the company’s share price has gone up by 19.8% which is $6.24. Wall Street analysts at BMO Capital Markets have raised the target price from $27 to $41. This was followed by other consensus estimate analysts doing the same. The deal comes as a win-win contract for both companies as Broadcom Corporation (NASDAQ:BRCM) focuses more on business enhancement and Ittiam focuses on developing video communications software and devices.
JP Morgan To Overlook Relinquishment Of Baseband Market
The leading semiconductor provider for wired and wireless communications has engaged JP Morgan to handle the potential sale or any other strategic administrative move of the baseband business of Broadcom.