Broadcom Buys Chip Maker (BRCM)
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…
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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.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
