Broadcom acquires Alphamosaic

Broadcom has acquired fabless semiconductor company, Alphamosaic. Alphamosaic was an early stage investment by Prelude Trust in April 2001, when it backed a team, led by Steve Barlow and Robert Swann in a spin-out from Cambridge Consultants. The company has received a total of £16m from Prelude and subsequent investors ACT, TTP Ventures and Doughty Hanson Technology Ventures.

Prelude has received as a consideration for its Alphamosaic shareholding, Broadcom Class A common shares, a number of which remain subject to an 18 month escrow agreement. Based on the closing price of the Broadcom stock on 17 September, 2004 of $28.86 per share, this sale increases the valuation of Prelude’s investment to £13.6m. This valuation represents a multiple of 2.7 times Prelude’s investment cost of £5.1m. Prelude’s shareholding in Alphamosaic at 31 March, 2004 was valued at £7m.