Broadcom to Acquire Innovsion for £32m

Semiconductor firm Broadcom Corporation has announced a recommended cash offer for Innovision Research & Technology plc at 35p per share, valuing the company at approximately £32m. The offer represents an 84 per cent  premium to yesterdays closing price of 19p. Broadcom has received irrevocables, or letters of intent, in respect to 54 per cent of the Companys share capital.

Innovision specialises in the development of intellectual property for Near Field Communications (NFC). The Companys IP and engineering services have been contracted by many of the worlds leading semiconductor companies for the development of NFC chips for use in mobile handsets and other devices. The company is still at an early stage of its development, pre-royalty revenue, and today reported revenues for the year ended 31 March 2010 of £2m, almost double the previous year’s turnover of £1.2m. Broadcom believes that Innovision’s NFC technology will complement its connectivity solutions, and that NFC will become increasingly adopted in smartphones and other mobile devices.

“The Board is pleased to recommend this offer to Innovision shareholders, which is at a significant premium to the current market price,” says Innovision CEO, David Wollen. “We are proud to have developed NFC technology to the leading position it is in today and feel that now is an appropriate time to
allow a global corporation with the commitment and financial resources to progress it to the next level and commercial roll-out.”