Latest Broadcom Purchase Targets Mobile Imaging

Broadcom has always relied on acquisition rather than internal R&D to stay ahead in technology, and the past few months have seen it make a string of strategic purchases. The latest adds image processing for mobile devices to its portfolio, as it snaps up Israel-based Sightic Vista.

Focal Points:

• The price for the start-up was reported to be between $10m and $20m, by Israeli newspaper Globes, though Broadcom would do no more than confirm the transaction (the price falls below the level that would require full reporting). The deal follows the acquisition of another Israeli specialist, femtocell chip designer Percello, in October, and of US WiMAX/LTE baseband supplier Beceem a month before that.
• Sightic, founded in 2001, specializes in software and hardware image processing and enhancement, and the integration of these capabilities into very small devices such as miniature digital cameras and camcorders. The solutions include algorithms for processing images and multimedia applications for mobile devices. Broadcom sources said the main interest would be in applying these functions to broader silicon platforms, targeted at smartphones and other multimedia-rich mobile products. The US firm is battling for a place in the handset space alongside the dominant Qualcomm, and is relying on cramming as many features as possible into its systems- on-chip and associated connectivity products. It has a highly integrated Wi-Fi/Bluetooth/GPS/ FM platform; is making progress in 2G and 3G basebands (and with Beceem, adds 4G); and is experimenting with specialized chips for emerging differentiators like NFC mobile payments and now image processing.
• According to Globes, “relatively little” was invested in Sightic by private investors, with no involvement by venture capital funds. It has begun to show revenue, with its customers including Samsung and LG. The company has several dozen employees and is based near Broadcom‘s own Israeli development center in Yakum.

Editor’s Note: It is possible to obliquely determine a company’s strategic direction based on acquisitions. Earlier this year, a client of ours was interested in a strategic partner’s acquisition history to see if what they were being told by their partner was in line with their actions…they were.