Broadcom Extends Fiber Access Portfolio with Acquisition of BroadLight

Broadcom Extends Fiber Access Portfolio with Acquisition of BroadLight

End-to-End Platform Opens New Addressable Markets for Next Generation Fiber Networks

IRVINE, Calif., March 21, 2012 /PRNewswire/ -- Broadcom Corporation (NASDAQ: BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, today announced it has signed a definitive agreement to acquire BroadLight, Inc., a Delaware corporation with an Israel-based subsidiary. BroadLight is a privately held provider of highly integrated networking and fiber access PON (Passive Optical Network) processors. With the addition of BroadLight,Broadcom expands its broadband access portfolio to support customer requirements for rolling out next-generation fiber networks worldwide. 

"The need for increased bandwidth for IPTV services, HDTV broadcasting and high speed Internet access are driving momentum for deploying fiber networks," said Dan Marotta, Executive Vice President and General Manager of Broadcom'sBroadband Communications Group. "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 — from OLT at the central office to CPE at the home. BroadLight's strong engineering team and broad IP will complement and extend our ability to deliver next-generation access technologies to customers."

In connection with the acquisition, Broadcom currently expects to pay approximately $195 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of BroadLight. The purchase price will be paid in cash, minus a portion of such purchase price attributable to certain unvested employee stock options that will be paid inBroadcom restricted stock units. Additional consideration of up to $10 million in cash will be reserved for future payment to holders of BroadLight capital stock and other rights upon satisfaction of certain performance goals. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects the acquisition of BroadLight to be roughly neutral to earnings per share in 2012. The transaction is expected to close in Broadcom's second quarter of 2012 and remains subject to customary closing conditions.