Broadcom Completes Sale of Certain Ethernet Controller-related Assets to QLogic
IRVINE, Calif., March 13, 2014 /PRNewswire/ -- Broadcom Corporation (NASDAQ: BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, today announced it has completed the sale of certain Ethernet controller-related assets to QLogic Corporation (NASDAQ: QLGC), a leading supplier of high performance network infrastructure solutions, for approximately $147 million in cash. The sale includes certain 10/40/100Gb Ethernet controller-related assets and non-exclusive licenses to intellectual property relating primarily to Broadcom's programmable NetXtreme® II Ethernet controller family. In connection with the transaction, Broadcom and QLogic have entered into a long-term supply agreement whereby Broadcom will become ASIC supplier to QLogic in support of the NetXtreme II product line. For more news, visit Broadcom's Newsroom.
Concurrent with the closing, QLogic has licensed certain Broadcom patents under a non-exclusive patent license agreement that covers QLogic's Fibre Channel products in exchange for a license fee of $62 million.
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 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 Broadcom's current expectations, estimates and projections about Broadcom's industry and business, management's beliefs, and certain assumptions made by Broadcom, 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. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause 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 transaction include, but are not limited to, the risks inherent in the sale of technologies and businesses, including unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, potential contractual, intellectual property or employment issues, and unanticipated costs related to services to be provided by Broadcom to QLogic in connection with the transaction.
Broadcom's Annual Report on Form 10-K for the year ended December 31, 2013, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings of Broadcom discuss important risk factors that could contribute to such differences or otherwise affect Broadcom's business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. Broadcom does not undertake any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo and the NetXtreme® logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU.
SOURCE Broadcom Corporation; BRCM Corporate