CEVA announced that it has acquired RivieraWaves for $19 million for its IP in technologies like Bluetooth and Wi-Fi. Out of the $19 million, $12 million will be paid in advance and the rest will be paid later depending on the performance. CEVA, Inc. is expected to get its licensing revenue boosted by 25% after its deal with RivieraWaves.
CEVA, Inc. is well-known as a semiconductor Intellectual Property (IP) company that focuses on DSP processor technology. It has been so good at this field that it has dominated the markets remaining at the top position in a commanding manner.
CEVA mentions its relationship with RivieraWaves even before them buying the company. They have been collaborating with each other for a couple of years for customers in many wireless applications. Primary area of their collaboration has been the Wi-Fi IP. The company retains the RivieraWaves employees for two years.
RivieraWaves is wireless connectivity IP Company which, as its websites mentions, is an ideal partner for companies looking to deliver wireless connectivity integrated chips for use in a variety of fields.
RivieraWaves was founded by former Wipro-NewLogic engineers. Wipro had acquired NewLogic, an Austrian IP developer in 2005 following an all cash deal. However, during the time of economic recession it closed down its site in Sophia Antipolis despite growth in revenue and profit. A team of Wipro-NewLogic in the Sophia Antipolis decided to form RivieraWaves.
In an open letter then released anonymous employees had mentioned their extensive experience in developing wireless solutions, especially WLAN and Bluetooth, and with our diverse talents in software design, digital and analog electronics, radio-frequencies and signal processing. No wonder why RivieraWaves has been successful.
Wipro-NewLogic developed Bluetooth and WLAN products and the employees worked in various domains like RF circuits design, embedded systems and wireless system specification. Even at the time of closing down the company had reported a growth of 29%.
RivieraWaves carried out the good record by introducing Wi-Fi facility for mobile devices like smartphones and tablets. They are leaders in providing Bluetooth Low Energy IP.
The deal shall be put to effect from 2015. CEVA expects to ship more than 400 million units of chips by 2018. Since RivieraWaves has excelled in smartphones and tablet based developments CEVA is very likely to receive the amount of revenue boost they are expecting out of this deal. Earlier Atmel had entered into a deal with connectivity supplier Newport Media Inc. for $140 million.