Broadcom to Acquire MoCA Chip Startup
SOURCE: MULTICHANNEL NEWS
5/03/2007, by Todd Spangler -- Multichannel News
Broadcom plans to buy Octalica, a startup developing chips for home-networking technologies based on the Multimedia Over Coax Alliance (MoCA) standard, for $31 million in cash.
Broadcom said it expects to integrate Octalica�s MoCA product portfolio with its silicon solutions for set-top boxes and broadband-access devices. MoCA can distribute video and data over existing in-home coaxial cabling at speeds up to 270 megabits per second.
�MoCA is a key technology that has gained significant traction with our [original-equipment-manufacturer] customers and the major cable, satellite and telecommunications service providers in the United States, which have shown a clear preference for in-home coax networking," Broadcom Communications Group general manager Dan Marotta said in a prepared statement.
"With Octalica's existing technologies and strong engineering team, Broadcom's ability to integrate MoCA solutions into our product roadmap will be further enhanced,� he added.
Privately held Octalica, founded in late 2005, has received funding from venture-capital firms Cedar Fund, Genesis Partners, StageOne Ventures and The Fishman Group. The 27-employee company is based in Newton Centre, Mass., with a design team in Tel Aviv, Israel.
The deal, approved by the boards of both companies, is expected to close prior to June 30.