MIPS, a provider of processor architectures that names Broadcom as its biggest client, had some big news this week when the networking firm announced that it’s extending their multi-year licensing agreement.

The relationship between the companies started in 1998, and the deal was made even more lucrative yesterday when word was sent out that Broadcom is paying no less than $26.5 million to lengthen the contract.

What’s also interesting is that MIPS hired Goldman Sachs back in April to find a buyer willing to acquire the company. At least one analyst listed Broadcom as a potential candidate, but in light of this latest commitment to the partnership it’s safe to cross the vendor’s name out.

For a payment of $26.5 million Broadcom has obtained non-exclusive worldwide license to patents owned or licensable by MIPS for use with its Broadcom products. In addition it has been granted a multi-year extension of its current MIPS architecture and core licenses that lasts until the last-to-expire of those patents has expired.”

Broadcom is solidifying its position in networking and mobile, its two core areas, and non-organic growth has become a central part of the company’s strategy. CTO Nick Ilyadis elaborated on this vision during an interview in theCube not too long ago, just a few months after the acquisition of BroadLight.

BroadLight makes semiconductor products for networking environments. Its passive optical network solutions are used by service providers and other big fish that Broadcom is gunning for, and the deal added a lot of extra value to the latter’s existing product line-up.

The embedded processor and controller technology that BroadLight developed earned it $55 million from VCs, who in turn got a big return on their investment when the deal was announced in March.