DOW JONES NEWSWIRES
Broadcom Corp. (BRCM) agreed to acquire BroadLight Inc., a closely held provider of fiber access passive optical network processors, for about $195 million as it looks to expand its broadband-access portfolio for next-generation fiber networks.
The semiconductor company said the increased bandwidth needed for Internet Protocol television services, high-definition TV broadcasting and high-speed Internet access is driving momentum for deploying fiber networks.
"Combining BroadLight's PON solutions with the strength of Broadcom's broadband access portfolio will enable us to offer a complete, end-to-end solution for customers," said Dan Marotta, executive vice president and general manager of Broadcom's broadband communications group.
BroadLight, established in 2000, is based in Herzliya, Israel, and has offices in Santa Clara, Calif., China, Taiwan and Korea.
Broadcom may pay up to an additional $10 million in cash for certain performance goals.
The company expects to close the deal during the second quarter and said it will be roughly neutral to 2012 earnings.
Broadcom reported in January its fourth-quarter profit fell 4.5% as revenue fell a less-than-expected 6.4%. The provider of chips for set-top boxes, networking and smartphones provided strong sales guidance for the first quarter, likely benefiting from its exposure to smartphone makers Apple Inc. (AAPL) and Samsung Electronics Co. (005930.SE, SSNHY).
Shares closed Tuesday at $38.39 and were inactive premarket. The stock is up 31% so far this year.
--By Melodie Warner, Dow Jones Newswires; 212-416-2283; email@example.com