Broadcom Buys Beceem For $316 Million To Add 4G To Its Portfolio

Here’s a big exit on the infrastructure side of the business: Broadcom has acquired Santa Clara, Calif.-based Beceem Communications. While Beceem bet early on WiMax technology, it more recently shifted gears to support LTE and has a dual mode chipset that supports both 4G technologies that’s particularly attractive. Broadcom expects to pay $316 million in cash to acquire the privately held company.

Broadcom says the acquisition of Beceem will bring 4G chips to its portfolio, which already includes 2G, 3G, WiFi and other wireless technologies. As a privately held company, Beceem raised millions of dollars in multiple rounds from several top-notch investors, including Global Catalyst Partners, Khosla Ventures, KTB Ventures, Walden International and strategic investors Intel (NSDQ: INTC) Capital, NEC, Mitsui, Samsung and Motorola (NYSE: MOT). It’s unclear how much the company has raised in all, but it’s fourth and fifth round raised a total of $60 million.

Unvested employee stock options will be given shares of Broadcom’s stock and a portion of the cash will be set aside as part of the deal’s terms. Broadcom expects the acquisition to be neutral to earnings by next year. The boards of both companies have approved the transaction, but it remains subject to customary closing conditions