Rockwell Acquires Chip Unit From ComStream

Moving into a new corner of the digital communications industry, Rockwell International Corp. said it has acquired a business unit of San Diego-based ComStream Corp. that makes computer chips used to collect data from satellites and other wireless sources.

Rockwell said it paid $50 million for the Hi-Media broad-band communications chip set business of ComStream. Broad band refers to the broad capabilities of satellite signals and other services to transmit large chunks of data, compared to the more narrow bandwidth of traditional phone lines.

The Hi-Media unit employs about 60 people and had sales of about $40 million last year.

Rockwell, which already dominates the market for chips used in traditional computer modems, said the acquisition enables the company to move quickly into new areas of data delivery and collection.

Hi-Media, for instance, already supplies chips used in receivers built by DirecTV, the Hughes Electronics satellite television service. Hi-Media is also developing chips that will be used in modems that connect computers to the Internet through coaxial cable networks that carry cable television signals.

Rockwell bought Hi-Media because the business has “a team that has established leading broad-band communications market positions through a proven ability to innovate,” said Dwight Decker, president of Rockwell’s semiconductor systems unit.

The Hi-Media acquisition is the latest step in Rockwell’s evolution from an aerospace company to leader in an array of high-tech industries.

The company also said Tuesday that Hi-Media will be folded into a new Rockwell division, called Rockwell Infotainment, that includes other modem communications products.

A.C. D’Augustine, former general manager of one of Rockwell’s Brooktree Division units, was named vice president and general manager of the new division.