Analysis
Broadcom Announces Intent to Acquire SC Square Ltd.
Broadcom Corporation has announced that it has signed a definitive agreement to acquire SC Square Ltd., a leading security software developer based in Israel.
WithIn connection with the acquisition, Broadcom expects to pay approximately $41.9 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of SC Square Ltd. The purchase price will be paid in cash, with a portion of the consideration placed into escrow pursuant to the terms of the acquisition agreement. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects the acquisition of SC Square Ltd. to be dilutive to earnings for the remainder of 2011 by approximately $0.01. The boards of directors of the two companies have approved the acquisition. The transaction remains subject to the satisfaction of closing conditions and is expected to close in Broadcom's second quarter, ending June 30, 2011.