Broadcom expands portfolio with powerline networking buy

US chip vendor Broadcom has acquired Spanish power line networking firm Gigle for $75m. An additional consideration of up to $8m will be reserved for future payment.

Gigle is a privately held company based in Spain that develops system-on-a-chip (SoC) solutions for home networking over power lines. Broadcom will integrate the technology with its own portfolio to design more highly integrated SoCs that allow whole-home network in segments including the set top box, broadband carrier access and wireless router.

The acquisition will also accelerate Broadcom’s time to market for, a draft specification for existing-wire home networking, developed under the International Telecommunication Union.

“The worldwide market has demanded technologies for powerline, coax and wireless networking using standards such as wifi, MoCA, HomePlug AV, IEEE 1901 and to allow the streaming of multiple high definition and 3D video streams,” said Jason Blackwell, digital home practice director at ABI Research.  “With electric outlets readily available around the home, more consumers are seeing the benefits of powerline, and service providers’ increased push toward gateways and IPTV is expected to help increase the market at a 32 perc ent compound annual growth rate from 2010 to 2015.”

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