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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (4848)	7/1/1999 12:38:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

Lee:Yes I noticed the Export/Import numbers,haven't seen that in a long time,things must be picking up overseas. Yes I had the same problem with SI all morning.

To: Lee who wrote (4848)	7/1/1999 4:24:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

US co acquires little-known Indian infotech start-up for $67m-(Armedia who?) Lee: If you still own Broadcom this story may interest you some. =================================== Armedia Home Page timesjobsandcareers.com armediainc.com Our Bangalore Bureau 1 JULY About a month ago, the gravy train stopped in Bangalore. Right in front of Armedia. Yeah, you're entitled to ask Armedia who? The chances of you hearing of or knowing Armedia are quite remote. Not surprising, since this start-up semiconductor design company based in Bangalore, has been extremely low profile.Besides, it's just two years old. But there may now be compelling reasons to sit up and take notice. Overnight, at least 10 of Armedia's employees have become millionaires, a la Silicon Valley-venture-capital-dream-come-true. Armedia has been acquired by California-based $203m Broadcom Corporation,which is also listed on Nasdaq. On June 1 this year, Broadcom bought 702,000 shares of Armedia for, hold your breath, $67m! And since all Armedia employees, “right down to the receptionist”, as president and CEO Tushar Dave puts it, were shareholders in the company, all of them have been well rewarded. Besides, their wealth has already increased rapidly since the announcement of the acquisition. By June 30, the shares earlier valued at $67m were worth $100m. And, for the record, Broadcom's market capitalisation on June 30 was over $13bn! A heady figure all right considering that the company had its initial public offering only in April 1998! Broadcom is a supplier of system level silicon solutions enabling broadband digital transmission to home and enterprise. “We will use Armedia to significantly increase our product development process. This is our first international acquisition and significantly, it is a Bangalore company,” said Henry T Nicholas, president and CEO, Broadcom. The jewel in the Armedia crown is the next generation MPEG technology that it has already developed. The technology matches performance needs of high definition digital televisions “This product alone is potentially worth a billion dollars,” says Rajendra Kumar Khare, general manager, Armedia Labs Pvt Ltd. Armedia's video decoder for studio applications has already been licensed to premier consumer electronics companies from Japan. “We have positioned ourselves as a product and technology company rather than as a services company. The valuation Armedia achieved is for this reason,” Dave said. Tushar Dave, incidentally, seems to be on a roll. While Armedia has been sold to Broadcom, another venture he co-founded, Arcus Technologies, was sold to Cypress Semiconductor, on June 30. Tushar Dave, who did his graduation from Mumbai, did a masters in the US and worked at Intel and VLSI Technology before steeping into an entrepreneur's shoes. Armedia was founded in Milpitas, California, with its Bangalore-based subsidiary being the design and development arm. (ET)