) recently completed its acquisition of BroadLight, Inc. The
acquisition was announced in March 2012.
Based in Delaware, BroadLight had a subsidiary in Israel as
well. BroadLight provides highly integrated networking and fiber
access PON (Passive Optical Network) processors.
Broadcom paid $195 million in cash for the acquisition. Broadcom
expects that the acquisition will be roughly neutral to the
bottom-line in 2012, excluding any purchase accounting-related
adjustments and fair-value measurements.
The ubiquitous demand for increased bandwidth for IPTV services,
HDTV broadcasting and high speed Internet access continues to drive
momentum for deploying fiber networks.
Management stated that the addition of Broadcom will broaden the
company's broadband access product line by powering Broadcom to now
offer a complete, end-to-end GPON solution for customers. The
solution spans from the optical line terminal (OLT) at the central
office to the optical network unit (ONU) at home.
This product line from BroadLight when combined with Broadcom's
networking and management software, home networking portfolio and
VoIP expertise will offer the customers an extensive product
portfolio of wireline access products. The acquisition will help
Broadcom support customer requirements for rolling out
next-generation fiber networks on a worldwide basis.
Industry stalwart like Broadcom continues to be active on the
acquisition front to expand its product portfolio. The company has
an enormous cash balance as well which it uses to make strategic
acquisitions. Last month, Broadcom completed the acquisition of
NetLogic Microsystems, Inc. for $3.7 billion, announced in
We maintain our Neutral recommendation on Broadcom. Our
recommendation is supported by a Zacks #3 Rank, which translates
into a short-term rating of Hold.
BROADCOM CORP-A (
): Free Stock Analysis Report
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