Broadcom Corp. has signed an agreement to acquire Octalica Inc., a privately-held fabless semiconductor company. The deal is estimated at $31 million in cash.
Octalica, headquartered in Newton Centre, Mass., specializes in the design and development of networking technologies based on the MoCA (Multimedia over Coax Alliance) standard, which enables distribution of digital multimedia content throughout the home over existing coaxial cable.
MoCA has emerged as a popular method for in-home multimedia distribution among cable, satellite and telecommunications service providers in the U.S., a complement to Broadcom's set-top box and broadband access technologies, according to the companies.
Irvine, Calif.-based Broadcom said a portion of the payment would be placed into escrow as part of the agreement. The merger, which has been approved by both boards of directors, is expected to close during Q2.
