Broadcom Buys Zyray Wireless in 3G Push

Broadcom said Wednesday that it has acquired Zyray Wireless, which manufactures a coprocessor allowing 3G technologies to be added to mobile handsets.

Zyrays SPINNER chip will be combined with Broadcom Corp.s single-chip EDGE/GPRS/GSM controllers, the company said. San Diego-based Zyray Wireless Inc. is also working on HSDPA (High Speed Downlink Packet Access) technology, the next step beyond WCDMA (Wideband Code Division Multiple Access) that will allow data rates of 10 Mbits/s.

As part of the deal, Irvine, Calif.-based Broadcom will pay Zyray shareholders 2.23 million shares currently worth $96 million, although the deal will close in the third quarter. A $3 million convertible note Broadcom had held in Zyray will be canceled without repayment.

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“We see significant activity in the WCDMA handset space, and having Zyrays products and technologies in-house gives us the flexibility of offering our customers the ability to manufacture both low-cost EDGE phones as well as higher-functionality WCDMA handsets,” Robert Rango, group vice president of Broadcoms mobile and wireless group, said in a statement.

“Zyray also enhances Broadcoms technology portfolio with valuable intellectual property in the HSDPA and MIMO [multiple input, multiple output] areas,” he said.

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