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Consortium of venture capital firms sells Broadlight to Broadcom
[April 06, 2012]

Consortium of venture capital firms sells Broadlight to Broadcom

Apr 06, 2012 (Datamonitor Financial Deals Tracker via COMTEX) -- Consortium of venture capital firms has completed the sale of Broadlight, Ltd., an Israel-based networking and embedded processor developer, to Broadcom Corporation, a US-based provider of semiconductors.

Announcement (March 21, 2012): Consortium of venture capital firms has signed a definitive agreement to sell Broadlight to Broadcom. The transaction is valued at 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.


Rumor (December 13, 2011): According to Bloomberg, TheMarker reported that a consortium of venture capital firms have signed a letter of intent to sell Broadlight to Broadcom.

Broadcom is planning to acquire Broadlight for a consideration in between $230 million and $340 million.

The consortium includes Azure Capital Partners, Benchmark Capital, Delta Ventures, Israel Seed Partners, Motorola Ventures, Star Ventures and Cipio Partners.

Deal Type Private Equity Sub-Category Exit 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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