Broadcom Corporation announced that it has signed a definitive agreement to acquire Widcomm, a privately-held, San Diego-based company that provides software solutions for Bluetooth products.
The company says that the combination of Widcomm's software and Broadcom's Bluetooth semiconductor portfolio enables Broadcom to provide the industry's with a complete Bluetooth solution. It's reported that Widcomm software ships in nearly 100 end products from more than 80 customers.
Every Bluetooth device requires a software stack, and Widcomm's stacks have been broadly adopted within the Bluetooth industry. The list of companies using this software includes Dell, Hewlett-Packard, IBM, Logitech, Panasonic, Samsung and Sony, among many others.
Broadcom will pay a total of approximately US$49 million in the form of shares of its Class A common stock issued or reserved for future issuance (with the number of shares to be based on the average NASDAQ National Market closing price for a specified period prior to the closing) in exchange for all outstanding shares of Widcomm's capital stock.