Broadcom to pay $195 million for BroadLight

Reuters News
Posted: Mar 21, 2012 8:48 AM
Broadcom to pay $195 million for BroadLight

(Reuters) - Broadcom Corp said it would pay about $195 million to buy BroadLight, a maker of chips used in fiber optic networks carrying services such as television and high-speed Internet.

Broadcom said it would pay shareholders of Israel-based BroadLight in cash, minus a portion attributable to unvested employee stock options that would be paid in Broadcom restricted stock units.

The company, which said the deal would be roughly neutral to 2012 earnings per share excluding accounting adjustments, would also reserve up to $10 million in cash for future payment if performance goals were reached.

The deal, which is subject to closing conditions, is expected to be finalized in the second quarter, Broadcom said.

(Reporting By Sinead Carew; Editing by Gerald E. McCormick)