The acquisition of the privately held company that provides wireless connectivity IP for Wi-Fi and Bluetooth. expands CEVA’s licensing and royalty revenue base in its existing markets: including smartphones, tablets and small cells, and extends the company’s market reach to include emerging markets such as wearables, the smart home, connected cars and the Internet of Things (IoT).
The move gives CEVA access to an addressable market that ABI Research, estimates at more than 35 billion connected devices.
RivieraWaves latest Wi-Fi 802.11ac and Bluetooth Smart 4.1 IPs are complete solutions, composed of both the PHY and MAC layers along with system and RF support, and are already deployed with leading semiconductor companies.
Gideon Wertheizer, CEO of CEVA, said RivieraWaves’ Wi-Fi and Bluetooth IPs are available in both a power-efficient hardware-based design and a DSP-based design which provides flexibility for differentiation and a unified platform for LTE and Wi-Fi.
He said CEVA and RivieraWaves have successfully collaborated to address the Wi-Fi market for the last two years. The companies already have multiple joint customers deploying RivieraWaves’ Wi-Fi IP on a CEVA DSP targeting mobile devices and the connected home.
Under the terms of the agreement, CEVA has agreed to pay approximately $19 million to acquire RivieraWaves. CEVA will make an initial payment of approximately $12 million at closing with the rest payable upon satisfaction of certain performance and other milestones as well as a two year retention plan for the current RivieraWaves’ employees.