Cypress To Acquire Broadcom's Wireless Internet Of Things Business

(RTTNews) - Cypress Semiconductor Corp. (CY) and Broadcom Limited (AVGO) announced the signing of a definitive agreement under which Cypress will acquire Broadcom's Wireless Internet of Things (IoT) business and related assets in an all-cash transaction valued at $550 million. Cypress will acquire Broadcom's Wi-Fi, Bluetooth and Zigbee IoT product lines and intellectual property, along with its WICED brand and developer ecosystem.

Broadcom's IoT business unit, which employs approximately 430 people worldwide, generated $189 million in revenue during the last twelve months.

Cypress expects the transaction to be accretive within a year of closing and to improve its gross margin, earnings and long-term revenue potential. Broadcom will continue to focus on its wireless connectivity solutions for the access and mobility segments that are not IoT related, including serving set-top box, wireless access, smartphone, laptop and notebook customers.