Mindspeed Technologies, a provider of semiconductor solutions for network infrastructure applications, this morning announced that it has acquired UK-based Picochip, a supplier of integrated system-on-chip (SoC) solutions for small cell base stations.

Mindspeed is paying $51.8 million for Picochip, a mix of cash and stock, and up to $25 million in earn-out payments in the first calendar quarter of 2013.

Here’s how the company pitches the move to shareholders and the press:

Together, Mindspeed and Picochip will offer the most comprehensive portfolio of base station semiconductor solutions on the market, from residential to enterprise to pico/metro applications.

Through this timely 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, while also addressing comprehensive support for all 3G and 4G global air interface standards.

Mindspeed says it will cough up $27.5 million in cash, financed in part with bank debt, plus roughly 5.19 million in shares (approximately 15 percent of outstanding Mindspeed shares) for a total of $24.3 million. The transaction is expected to close in the first calendar quarter of 2012.

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