Chip manufacturer Broadcom said today that it is buying Advanced Micro Devices’ digital television (DTV) business for $192.8 million in order to branch out into the low-end digital TV screen market.
Both boards have passed the purchase, and Broadcom expects the deal to close by Dec. 31 once it passes regulatory muster. The deal doesn’t require shareholder approval.
Broadcom said the acquisition of AMD’s DTV business is expected to enable the company to immediately scale its DTV business and, in conjunction with its existing products, to offer a complete product line that covers all segments of the DTV market, ranging from low-end value and mid-range quality to high-end interactive platforms and panel processors.
The acquisition is also intended to expand Broadcom’s existing Tier 1 customer base.
In connection with the transaction, approximately 530 members of AMD’s dedicated DTV team, in addition to certain employees directly supporting this team located in six primary design centers around the world, will be invited to join Broadcom.
AMD’s DTV product line includes all Xilleon-integrated DTV processors and complete turnkey reference designs, as well as NXT receiver ICs, the Theater 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling.
“The acquisition of AMD’s DTV business, which will become the core of Broadcom’s DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio, while also expanding our tier one customer base, and positions us to achieve leadership and long-term growth in this important market segment,” said Daniel Marotta, senior vice president and general manager of Broadcom’s Broadband Communications Group. “We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers.”
More Broadband Direct: