Leading semiconductor solutions provider
Broadcom Corporation (
), a leading supplier of network infrastructure solutions, have
recently entered into an agreement for the sale of certain
10/40/100Gb Ethernet controller-related assets by Broadcom to
The agreement includes non-exclusive licenses to certain
intellectual property relating primarily to Broadcom's
programmable NetXtreme II Ethernet controller family. The
transaction, worth approximately $147 million, is expected to
close in the first quarter of 2014.
As a part of the deal, Broadcom will become an
application-specific integrated circuit (ASIC) supplier to QLogic
for the support of the NetXtreme II controllers. This transaction
helps Broadcom to provide a broader solution portfolio to its
customers through the involvement of QLogic as a partner. At the
same time, the transaction is also expected to be accretive to
Broadcom's earnings per share in 2014.
On the other hand, QLogic expects this deal to be immediately
accretive to revenue and non-GAAP earnings per share. With this
agreement, QLogic is expected to license certain Broadcom patents
covering its Fibre Channel products for a license fee of $62
The long-term partnership with Broadcom will further enable
QLogic to provide end-to-end solutions in the field of Ethernet
controllers to its enterprise customers. Broadcom is well placed
in the fast-growing wired and wireless communications markets,
with cutting-edge solutions for a growing number of connected
users, who are demanding more content and bandwidth.
Based in Irvine, CA, Broadcom is engaged in designing and
marketing semiconductor components of network voice, video, and
data traffic for various applications. The company continues to
drive innovation and engineering excellence across a broad range
of communication end markets to help its customers enhance device
performance and overall efficiency.
Broadcom currently has a Zacks Rank #3 (Hold). Other stocks
that look promising and are worth a look in the industry include
Himax Technologies, Inc
), each carrying a Zacks Rank #2 (Buy).
BROADCOM CORP-A (BRCM): Free Stock Analysis
FORMFACTOR INC (FORM): Free Stock Analysis
HIMAX TECH-ADR (HIMX): Free Stock Analysis
QLOGIC CORP (QLGC): Free Stock Analysis
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