IRVINE, Calif. (AP) ? Semiconductor company Broadcom Corp. is buying the privately held BroadLight Inc. for about $195 million in order to expand its broadband access portfolio and help deliver next-generation technologies.
BroadLight is a provider of highly integrated networking and fiber access Passive Optical Network processors.
The purchase price cited by Broadcom has been adjusted to reflect the cash that it expects to assume in the acquisition. Broadcom expects to pay for certain unvested employee stock options at BroadLight with Broadcom restricted stock units.
In addition, a performance-based payment of up to $10 million in cash may be made at some point in the future if BroadLight meets certain goals.
Broadcom, which is based in Irvine, Calif., expects the buyout to be about neutral to its 2012 earnings per share.
In January, Broadcom reported that its fourth-quarter net income fell, but its adjusted earnings topped Wall Street’s expectations.
The deal is targeted to close in the second quarter.
Broadcom shares were steady at $38.39 in premarket trading.