The price will be in the range of $35m. and $40m., though the official statement placed the deal at $31m.
Yehud-based Octalica is a privately held fabless semiconductor company, that specializes in the design and development of networking technologies based on the MoCA (Multimedia over Coax Alliance) standard.
This standard enables distribution of high quality digital multimedia content throughout the home over existing coaxial cable. Broadcom claims over 70 percent of U.S. homes already have coaxial cable installed in their homes.
Octalica also designs and produces a complex, cost effective System-on-a-Chip for cable systems allowing for the creation of inexpensive broadband home networks. According to IVC-Online, Octalica raised over $12 million from a host of investors, including the Fishman Group, ZOOM IT, and the Genesis Partners and Stage One Ventures funds.
David Cohen, founded Octalica as TMT Coaxial Networks in 2001. Cohen was also the co-founder of GADLine, which was sold in 2000 for $100 million. He stands to gain $6 million from the deal.
Broadcom Corporation, which produces semiconductors for wired and wireless communications, announced it signed a definitive agreement to acquire the Israeli startup, Octalica.