Broadcom Acquires Sunext Design, Inc. for Optical Drive Technologies to Enable Single-Chip High Definition Blu-Ray Disc® Players and Recorders
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Press release date: March 3, 2008
Purchase Accelerates Time to Integration of Front-End and Back-End Blu-ray Disc Capabilities into Next Generation Broadcom® Consumer Electronics Products
IRVINE, Calif. and SUNNYVALE, Calif., March 3 - Broadcom Corporation (NASDAQ:BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has acquired Sunext Design, Inc. ("Sunext Design"), a wholly-owned U.S. subsidiary of Sunext Technology Company Limited ("Sunext Technology"), and has licensed certain optical disk reader and writer technology from Sunext Technology. Sunext Technology is a privately-held fabless semiconductor company that specializes in optical storage technologies.
High definition optical disc players are emerging as a popular platform for in-home entertainment worldwide by combining the benefits of a high definition viewing experience with the convenience and familiarity of DVD media. Sunext single-chip front-end technology is a strong complement to the industry-leading Broadcom® system-on-a-chip (SoC) back-end Blu-ray Disc® platform, and key to an integration roadmap that will drive the cost of these devices down to levels that enable widespread consumer adoption of high definition optical disc players and recorders.
With the increasing adoption of full high definition 1080p digital televisions, and with the consumer electronics and media industries now united behind the Blu-ray Disc high definition DVD standard, demand for these high definition players and recorders is expected to increase significantly. As the market grows, manufacturers will strive to reduce prices by adopting optimized SoC solutions that integrate front-end and back-end functions. Broadcom, a leader in integrating advanced functionality, is responding to this trend by acquiring rights to the most highly integrated optical disc front-end technology available. The addition of Sunext's leading technology, along with the experienced engineering team from Sunext Design that can continue to enhance those technologies, will enable Broadcom to derive significant time to market advantages in the development of these highly integrated solutions.
"To further the widespread adoption of high definition Blu-ray Disc media players, it is imperative to have cost-effective, complete silicon solutions, and the acquisition by Broadcom of Sunext Design and license of its associated technology puts Broadcom firmly ahead in the race to offer a complete Blu-ray solution," said Michelle Abraham, Principal Analyst at In-Stat. "The merging of these technologies will help drive down the costs of next-generation Blu-ray Disc players and enable OEMs to deliver products that meet the price points required for mass adoption by consumers."
"The technology that will win the market share battle for Blu-ray Disc players and recorders will be the one that provides the highest quality audio and video processing while integrating the most advanced front-end and back- end functions into a single low cost device," said Dan Marotta, Senior Vice President and General Manager of Broadcom's Broadband Communications Group. "Sunext's technology and strong engineering team will enable Broadcom to integrate optical reader/writer capability into our industry leading Blu-ray Disc silicon solutions."
"Broadcom's strong position in the Blu-ray Disc player and other home digital multimedia market segments makes it an ideal partner for Sunext Technology, making our optical technologies available to an existing customer base that is demanding integrated, high performance yet low cost solutions," said Dr. Phil Mak, President of Sunext Technology. "Armed with our robust solution, Broadcom will help drive the next evolution of these devices to the digital home while Sunext continues to deliver products to our customers and core markets."
Sunext Design, Inc. is headquartered in Sunnyvale, California, with a highly experienced design team.
In connection with the transaction, which closed on Friday, February 29th, 2008, Broadcom will pay up to $48 million in cash in exchange for all of the outstanding shares of Sunext Design's capital stock and for the license rights granted by Sunext Technology. A portion of the consideration payable to the stockholders of Sunext Design will be placed into escrow pursuant to the terms of the acquisition agreement, and a substantial portion of the consideration payable to Sunext Technology for the license rights is subject to the achievement of certain deliverables post-closing. The boards of directors of both companies have approved the transaction. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in its first quarter. The amount of that charge, if any, has not yet been determined.
About Sunext Technology Company Limited
Sunext Technology Company Limited, with headquarters in Hsinchu, Taiwan, is privately held and a leading supplier of semiconductor products for Optical Disc Drive (ODD) applications. Sunext was formed in 2003 to capitalize on global demand for ODD silicon and operates design centers in Hsinchu, Taiwan; Taipei, Taiwan; Sunnyvale, USA; Eindhoven, The Netherlands and Shanghai, PRC. For further information visit the Sunext website at: www.sunext.com
About Broadcom's Broadband Communications Group
Broadcom offers manufacturers a range of broadband communications and consumer electronics SoCs that enable voice, video and data services over residential wired and wireless networks. These highly integrated silicon solutions continue to enable the most advanced system solutions on the market, which include digital cable, satellite and IP set-top boxes and media servers, broadband modems and residential gateways, high definition and digital televisions, Blu-ray Disc players, DVD recorders and personal video recorders.
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.
Broadcom is one of the world's largest fabless semiconductor companies, with 2007 revenue of $3.78 billion, and holds over 2,500 U.S. and 1,100 foreign patents, more than 7,400 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.
Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.
Broadcom Business Press Contact Laura Brandlin Senior Director, Marketing Communications 949-926-5108 email@example.com
Source: Broadcom Corporation; BRCM Broadband
Web site: http://www.broadcom.com/