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Comms chips

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.

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paolo.franzoi 12/5/2012 | 5:38:46 PM
re: Broadcom Bags BroadLight for $195M

 


I have known these guys a long time and was pretty much their first customer.  I thought they waited too long to sell the company but the Passave deal pretty much set a price that all the PON guys were trying to hit.


seven

Pete Baldwin 12/5/2012 | 5:38:30 PM
re: Broadcom Bags BroadLight for $195M

They did wait too long.


When you look at China, where the GPON action is... Jeff Heynen of Infonetics pointed out on Twitter. (Huawei has its own chips in HiSilicon; ZTE is using Marvell for EPON and could extend that to GPON).


Andrew Schmitt of Infonetics commented previously about the price being too high at $230M. It was surprising but understandable to see the price drop from there.

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