Communications chip maker Broadcom Corp. (NASDAQ: BRCM) has agreed to acquire privately held BroadLight Inc. for $195 million in a transaction that is essentially all-cash except for certain unvested BroadLight options. There is an additional $10 million earn-out provided certain performance conditions are met.
BroadLight, which is incorporated in the US and operates in Israel, makes “highly integrated networking and fiber access PON (Passive Optical Network) processors.” Broadcom believes the acquisition puts the company in a better position to take advantage of the forecast for explosive growth in demand for high-bandwidth communications.
Broadcom expects the acquisition to be revenue-neutral in the 2012 fiscal year. Broadcom’s shares closed at $38.39 yesterday in a 52-week range of $27.59-$41.44.