Broadcom Completes Acquisition of BroadLight

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.