Broadcom Bags BroadLight for $195M

Broadcom Corp. (Nasdaq: BRCM) will push deeper into the passive optical networking (PON) market by putting up US$195 million to acquire BroadLight Inc. (See Broadcom Buys BroadLight.)

Broadcom has also reserved up to $10 million more in cash for future payments to holders of BroadLight capital stock and other rights tied to certain performance goals. The company expects to close the deal in the second quarter.

Why this matters
The addition of BroadLight provides Broadcom more PON ammo following its acquisition of Teknovus last year, allowing it to round out a silicon portfolio for Optical Network Unit (ONU) gear as well as Optical Line Terminal (OLT) equipment.

Some analysts also believe the deal will add fuel to a heating rivalry between Broadcom and Qualcomm Inc. (Nasdaq: QCOM), which got into the PON game by acquiring Atheros.

For more

• Why Broadcom Might Buy BroadLight
• Broadcom to Acquire Teknovus
• Broadcom Unveils GPON Chips

— Jeff Baumgartner, Site Editor, Light Reading Cable