Mindspeed  Technologies has signed an agreement to acquire U.K.based Picochip Limited for a purchase price of approx $51.8 million, plus a potential earnout payment of up to $25 million payable in the first calendar quarter of 2013.

With this acquisition, Mindspeed  expects to become a market leader in small cell base station solutions for next generation mobile broadband communications infrastructure in an explosive growth market. The company plans to offer a comprehensive portfolio of base station semiconductor solutions on the market, from residential to enterprise to pico/metro applications. Small cell base station shipments are expected to grow to 24 million units by 2016.

According to company, through this combination, Mindspeed's enhanced product roadmap for single- and multi-mode 3G/4G solutions will enable it to capitalize on the rapid acceleration of the small cell wireless base station market

The transaction has been approved by Mindspeed’s and Picochip’s boards of directors and is subject to certain closing conditions. The transaction is expected to close in the first calendar quarter of 2012.