RivieraWaves deal to boost Ceva licensing revenue by 25 pct
TEL AVIV, July 9
TEL AVIV, July 9 (Reuters) - Israeli mobile chip designer Ceva Inc said on Wednesday its acquisition of RivieraWaves of France will increase its revenue from licenses by 25 percent in 2015.
Ceva's licensing revenue has averaged about $22 million a year.
In a conference call, Ceva said the deal is expected to be accretive in 2015 and it sees shipments exceeding 400 million units of royalty-bearing connectivity chips by 2018.
The company announced on Tuesday it would pay $19 million for RivieraWaves, which provides wireless connectivity intellectual property for Wi-Fi and Bluetooth.
The deal expands Ceva's licensing and royalty revenue base in its existing markets including smartphones and tablets and extends its reach to emerging markets such as wearables and the smart home.
RivieraWaves had revenue of $4 million in 2013, said Ceva, whose shares were up 0.8 percent to $15 in early Nasdaq trading. (Reporting by Tova Cohen)