Broadcom Completes Acquisition of BroadLight End-to-End Platform Expands Fiber Access Portfolio
IRVINE, Calif., April 5, 2012 /PRNewswire/ --Broadcom Corporation (NASDAQ: BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, today announced it has completed its acquisition of BroadLight, Inc., a leading provider of highly integrated networking and fiber access PON (Passive Optical Network) processors.
The addition of BroadLight extends Broadcom's industry leading 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 our IP and product portfolio with high performance, flexible GPON products, increasing the addressable market of our broadband communications business," said Dan Marotta, Broadcom's Executive Vice President and General Manager, Broadband Communications Group. "BroadLight accelerates our time-to-market in GPON, adds important OLT products and technology and enhances our longer-term fiber roadmap."
In connection with the acquisition, Broadcom paid approximately $195 million subject to certain adjustments, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of BroadLight. The purchase price was paid in cash, except that a portion of the purchase price attributable to unvested employee stock options will be paid in Broadcom restricted stock units. Additional consideration was reserved for future payment upon satisfaction of certain performance goals. Excluding any purchase accounting related adjustments or fair value measurements, Broadcom expects the acquisition of BroadLight to be approximately neutral to earnings per share in 2012.
Broadcom Corporation (NASDAQ: BRCM), a FORTUNE 500® company, is a global leader and innovator in semiconductor solutions for wired and wireless communications. Broadcom® products seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. With the industry's broadest portfolio of state-of-the-art system-on-a-chip and embedded software solutions, Broadcom is changing the world by Connecting everything®. For more information, go to www.broadcom.com.
Cautions Regarding Forward-Looking Statements
All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. Examples of such forward-looking statements include, but are not limited to, references to the benefits afforded by the acquisition to Broadcom's Broadband Communications Group's business and the effect of the acquisition on Broadcom's earnings per share. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Important risk factors that may cause such a difference for Broadcom in connection with the acquisition of BroadLight include, but are not limited to unexpected variations in market growth and demand for networking and fiber access PON processors and related technologies, the risks inherent in acquisitions of technologies and businesses, including the timing and successful completion of technology and product development through volume production, integration issues, costs and unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, potential contractual, intellectual property or employment issues and charges resulting from purchase accounting adjustments or fair value measurements.
Broadcom's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the such risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
Broadcom®, the pulse logo, Connecting everything®, and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.
SOURCE Broadcom Corporation; BRCM Corporate