Broadcom Corporation is a company with over $ 10 billion market capitalisation, Tushar A Dave, an Indian entrepreneur who started the company in the US in 1997, told a news conference here.

This acquisition on June 1, Dave said, would link Armedia's internationally renowned expertise in semiconductor and digital video technology with Broadcom's broadband digital data transmission solutions.

He said this strategic tie-up was the first of its kind involving a largely India-based technology firm, noting that the company's technology and competence had been developed in the Bangalore-based subsidiary, Armedia Labs Pvt Ltd.

As a result of the acquisition, Armedia Labs would become Broadcom India Pvt Ltd and would become an internal technology centre for Broadcom's global operations, concentrating onresearch into high definition television, mixed-signal designs and set top boxes, it was stated.

Dave said the acquisition would allow Broadcom to leverage the availability of world-class software talent in India, to help drive future product lines and technologies.

"India is already recognised as a world leader in the production of video content and distribution, which ultimately drives a large potential market for Broadcom's products," a media release quoted Dr Henry T Nicholas III, president and CE of Broadcom, as saying.

According to him, Broadcom is the US market leader in broadband communications with the company's broadband cable and telephone line technology for television set-tops and high-speed M5M.

"The addition of Armedia allows US to grow our research and development capabilities and will at the same time help US become a leading supplier of integrated circuits for broadband communications solutions in the large and rapidly growing Indian market," he added.

Dave said the acquisitionwould also facilitate the entry of Broadcom Corporation into the Indian internet service provider (ISP) and digital television markets.

According to him, the company sees a large potential market for its cable modems, which enable digital transmission across co-axial cable, and set-top boxes, which decode digital television signals.