Mindspeed closes on Picochip acquisition


Network infrastructure semiconductor supplier Mindspeed Technologies said it has completed its previously announced $76.8 million acquisition of privately-held, U.K.-based Picochip.

Picochip is a supplier of integrated system-on-chip solutions targeting small cell base stations, and has a history of supplying equipment to the femtocell market.

“This marks the closing of the most strategic and exciting acquisition in Mindspeed’s history,” said Mindspeed CEO Raouf Halim, in a statement. “Our combination bolsters and accelerates our position in both 3G/[HSPA] and 4G/[LTE], and we believe we will have the No. 1 market position in deployed small cell processors worldwide, with 70% market share in 3G/HSPA deployments.” Mindspeed expects the market for small cell technology and equipment to be worth $3 billion by 2016.

Analysts are predicting that the market for femtocells, picocells and microcells will hit $14 billion by 2015. Highlighting the heat being generated in the small-cell market was Crown Castle’s $1 billion acquisition of NextG Networks late last year.

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Dan Meyer

Editor-in-Chief, Telecom Software, Policy, Wireless Carriers
Dan Meyer started at RCR Wireless News in 1999 covering wireless carriers and wireless technologies. As editor-in-chief, Dan oversees editorial direction, reports on news from the wireless industry, including telecom software, policy and wireless carriers, and provides opinion stories on topics of concern to the market such as his popular Friday column “Worst of the Week.”