Orange County Register

Irvine chipmaker Broadcom has agreed to buy Dune Networks for $178 million.

Dune, based in Yakum Israel with an office in Sunnyvale, has developed a scalable chipset  that can connect to 10,000 servers with a single deployment.

The acquisition adds to Broadcom’s line of communications chips to meet growing customer demand on the infrastructure for cloud computing (software and data stored online instead of on a computer or mobile device).

“This technology is particularly well suited to meet the emerging requirements for cloud computing networks at a large scale, and will enable us to address new market applications for Ethernet in the data center,” said Broadcom Vice President Martin Lund.

Broadcom has been seeking to acquire companies to bolster its cloud computing products since its bid for Emulex failed, according to InformationWeek.

Dune was launched in 2000 and now has 100 employees. It has received $50 million in venture capital from Pitango Venture Capital, Evergreen Venture Partners and other investors.

The deal is expected to close by March 31, the end of Broadcom’s first quarter.

Other acquisitions and investments….

• O.C. solar company to receive $20 million
• Surf industry giant buys O.C. online retailer
• O.C. company doubles size with Hong Kong purchase
• GE creates $250 million fund for health entrepreneurs
• Are angel investors abandoning startups?
• O.C. venture capital investments drop in Q3
• Money for high-growth firms drying up
• O.C. drug company buys skincare firm

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