Cipio Partners, a direct secondary investment firm with offices in Luxembourg, Munich and San Jose, has agreed to sell Israeli PON chip maker BroadLight to Nasdaq-listed semiconductor giant Broadcom Corp.

The sale marks the fifth major exit of a Cipio portfolio company in the semiconductor space in the last two years. Financial terms of the deal were not disclosed.

Headquartered in Herzliya, BroadLight makes PON chips for high-speed telecom networks and has been a Cipio portfolio company since 2007.

“The semiconductor space has been a challenging market for most investors due to the very high capital investment required,” said Roland Dennert, a managing partner at the firm.

“For late-stage growth investors like Cipio Partners, the scalability of the business model, once companies have reached critical mass, has made it a good industry to do business in.

Tom Anthofer, also a managing partner at the firm, added, “After a very challenging semiconductor market since 2006, the publicly quoted semi companies have regained their strength lately, as evident in the run-up of NASDAQ and other Semi-heavy indices.

“We at Cipio have taken advantage of this momentum and matched key buyers that selectively come back to the M&A market with our portfolio.” (…)

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