) continues to make efforts to broaden its product portfolio.
According to Forbes, Broadcom intends to buy Israeli-based
BroadLight Ltd., for roughly $200.
BroadLight provides highly integrated networking and embedded
processors which enable fiber grade quality of service delivery for
central office and customer premise equipment.
Established in 2000, privately-held BroadLight has offices in
Santa Clara, CA, China, Taiwan and Korea. The company was
funded by venture capitalists - Azure Capital Partners,
Benchmark Capital, Delta Ventures, Israel Seed Partners, Motorola
Ventures, the venture fund of Motorola, Star Ventures and Cipio
Partners. The company is headquartered in Herzliya, Israel.
This fiber grade architecture from BroadLight can power
equipment vendors by enabling broadband telecommunication operators
to access fixed and mobile networks and connected digital
BroadLight's fiber access product portfolio comprises of two
distinct product lines: Helios embedded multi-core
processors and Alto fiber access GPON processors. In addition,
BroadLight's processors are designed with unique fiber grade
architecture, which allows concurrent performance of triple
and quad play services to ensure excellent quality.
In September, Broadcom Corporation announced that it will
acquire NetLogic Microsystems for $3.7 billion or $50 per share.
Headquartered in Santa Clara, California, NetLogic develops
high-performance intelligent semiconductor solutions that power
next-generation Internet networks.
The transaction is expected to close in the first half of 2012.
Broadcom expects the acquisition to be accretive to the
bottom-line by approximately $0.10 (excluding onetime items)
Management expects the acquisition to broaden Broadcom's
infrastructure portfolio with a number of critical new product
lines and technologies, including knowledge-based processors,
multi-core embedded processors, and digital front-end processors.
These acquisitions will hopefully provide Broadcom the
technological edge, which has become so very critical in its
We continue to maintain a 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