Broadcom plans to buy Octalica, a startup developing chips for home-networking technologies based on the Multimedia Over Coax Alliance (MoCA) standard, for $31 million in cash.
Broadcom said it expects to integrate Octalica’s MoCA product portfolio with its silicon solutions for set-top boxes and broadband-access devices. MoCA can distribute video and data over existing in-home coaxial cabling at speeds up to 270 megabits per second.
“MoCA is a key technology that has gained significant traction with our [original-equipment-manufacturer] customers and the major cable, satellite and telecommunications service providers in the United States, which have shown a clear preference for in-home coax networking," Broadcom Communications Group general manager Dan Marotta said in a prepared statement.
"With Octalica's existing technologies and strong engineering team, Broadcom's ability to integrate MoCA solutions into our product roadmap will be further enhanced,” he added.
Privately held Octalica, founded in late 2005, has received funding from venture-capital firms Cedar Fund, Genesis Partners, StageOne Ventures and The Fishman Group. The 27-employee company is based in Newton Centre, Mass., with a design team in Tel Aviv, Israel.
The deal, approved by the boards of both companies, is expected to close prior to June 30.
