US chip maker Broadcom to acquire Israel’s BroadLight for $195 mn
22 Mar 2012
Maker of semiconductors for wired and wireless communications, Broadcom Corp, yesterday agreed to buy privately-held BroadLight Inc. for about $195 million in order to expand its broadband access portfolio.
Broadcom, which makes chips for DVD players, digital television sets, high-speed mobile networks, cell phones and tablet PC's, will pay an additional amount of up to $10 million in cash based on performance if BroadLight meets certain goals.
Founded in 2000 and based in Herzliya, Israel, BroadLight is a provider of highly integrated networking and embedded processors enabling fibre grade quality of service delivery for central office and customer premise equipment.
Its fibre grade architecture powers equipment vendors serving broadband telecommunication operators' fibre access fixed and mobile networks and connected digital homes worldwide.
The company's fibre access product portfolio comprises of two distinct product lines: Helios embedded multi-core processors and Alto fibre access GPON processors.
The company is backed by Azure Capital Partners, Benchmark Capital, Delta Ventures, Israel Seed Partners, Motorola Ventures, Star Ventures and Cipio Partners.
The acquisition, which will be Broadcom's 10th purchase of an Israeli company, will help it to expand its broadband access portfolio to support customer requirements for rolling out next-generation fibre networks worldwide.