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Broadcom acquires Broadlight
[April 10, 2012]

Broadcom acquires Broadlight

Apr 10, 2012 (Datamonitor Financial Deals Tracker via COMTEX) -- Broadcom Corporation, a US-based provider of semiconductors, has acquired all of the outstanding shares of capital stock and other equity rights of Broadlight, Ltd., an Israel-based networking and embedded processor developer.

Announcement (March 21, 2012): Broadcom has signed a definitive agreement to acquire all of the outstanding shares of capital stock and other equity rights of Broadlight for approximately $195 million.

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 in Broadcom 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. The transaction is expected to close in second quarter of 2012.


Update on March 20, 2012: According to Reuters, Broadcom will sign an agreement to acquire Broadlight for $230 million.

Rumor (December 13, 2011): According to Bloomberg, TheMarker reported that Broadcom has signed a letter of intent to acquire Broadlight for a consideration between $230 million and $340 million.

Broadlight is backed by venture capital firms including Azure Capital Partners, Benchmark Capital, Delta Ventures, Israel Seed Partners, Motorola Mobility Ventures, Star Ventures and Cipio Partners.

Deal Value (US$ Million) 205 Deal Type Acquisition Sub-Category Majority Acquisition Deal Status Completed: 2012-04-05 Deal Participants Target (Company) Broadlight, Ltd.

Acquirer (Company) Broadcom Corporation Deal Rationale The addition of BroadLight extends Broadcom's industry broadband access product line, enabling Broadcom to offer a complete, end-to-end GPON (Gigabit Passive Optical Network) solution for customers from the optical line terminal (OLT) at the central office to the optical network unit (ONU) at the home.

Combined with Broadcom networking and management software, home networking portfolio and VoIP expertise, the acquisition provides customers with a rich product offering spanning a complete portfolio of wireline access products. BroadLight also extends Broadcom's broadband access roadmap to support customer requirements for rolling out next-generation fiber networks worldwide.

The BroadLight acquisition strengthens Broadcom's IP and product portfolio with high performance, flexible GPON products, increasing the addressable market of broadband communications business.

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