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Mergers and Acquistions News

Categories: Semi-Conductors

October 29th 2008, 18:26PM

Broadcom, a producer of semiconductors for wired and wireless communication systems, has completed the takeover of AMD's digital television (DTV) division in a multi-million dollar deal.

A definitive agreement had originally been agreed between the two parties in August, but the projected revenue of the DTV business fell below previous forecasts, leading to a revision of the cash price.

Broadcom and AMD subsequently agreed on a payment of $141.5 million (£86.3 million) instead of the original $192.8 million.

In a statement confirming the deal, Broadcom said the acquisition will allow it to develop a dedicated digital TV business with a "complete product line" ranging from low-end value and mid-range quality sets to high-end interactive platforms and panel processors.

The company said the acquisition will also boost its tier one customer base, which already includes DTV brands from around the globe.

Broadcom is one of world's biggest producers of semiconductors. In 2007, the firm recorded revenues of $3.78 billion.

Since 1999, it has completed over 30 strategic acquisitions, including deals for Alliant Networks, M-Stream and Zyray Wireless.
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