RealTime IT News

Broadcom to Acquire Silicon Spice

Broadcom Corp. Monday made a move to add new voice and data capabilities in its products. Broadcom will exchange about 5 million shares of its Class A common stock for all outstanding shares of Silicon Spice.

Silicon Spice's provides the core processing engine within the gateway and access devices that connect the traditional public-switched-telephone network to packet-based networks such as the Internet.

The acquisition of Silicon Spice and its communications processor technology will enable Broadcom, a provider of integrated circuits enabling broadband communications, to enter new markets in IP and ATM packet-based networks with flexibility for Any-Service-Any-Port (ASAP), according to an industry analyst.

"This transaction highlights a new class of devices defined as access communications processors," said Will Strauss, president, Forward Concepts, an analyst for the digital signal processing industry.

"Generally, we believe that access communications processors will have an even greater impact on the communications market than network processors have had," he said.

The company recently launched a new signal processing architecture that will enable the delivery of voice and data services simultaneously over a unified data network with the highest density of voice channels in the industry.

"This unique combination will enable Broadcom to provide the highest density packet telephony silicon and software solutions to our customers said Henry T. Nicholas III, president and chief executive officer of Broadcom.

The merger transaction is expected to close within two months.