Broadcom Corporation has acquired Sunext Design for $48 million in order to expand its presence in the Blu Ray market. Also, Broadcom licensed certain optical disk reader and writer technology from Sunext Technology, the former owner of Sunext Design.

Sunext single-chip front-end technology is a strong complement to the industry-leading Broadcom system-on-a-chip (SoC) back-end Blu-ray Disc platform, and key to an integration roadmap that will drive the cost of these devices down, Broadcom explained.

The deal is presented as a consequence of the Blu Ray adoption as high definition standard.

"To further the widespread adoption of high definition Blu-ray Disc media players, it is imperative to have cost-effective, complete silicon solutions, and the acquisition by Broadcom of Sunext Design and license of its associated technology puts Broadcom firmly ahead in the race to offer a complete Blu-ray solution," said Michelle Abraham, Principal Analyst at In-Stat.

Broadcom considers that as the market grows, manufacturers will strive to reduce prices by adopting optimized SoC solutions that integrate front-end and back-end functions.

Broadcom is responding to this trend by acquiring rights to the most highly integrated optical disc front-end technology available.

"The technology that will win the market share battle for Blu-ray Disc players and recorders will be the one that provides the highest quality audio and video processing while integrating the most advanced front-end and back- end functions into a single low cost device," said Dan Marotta, Senior Vice President and General Manager of Broadcom's Broadband Communications Group.

The boards of directors of both companies have approved the transaction. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in its first quarter. The amount of that charge, if any, has not yet been determined.