Broadcom confirms $195M deal to acquire BroadLight
Broadcom confirmed rumors that it is going to acquire BroadLight, a provider of embedded process for PON-based Fiber to the Home (FTTH) network systems.
Under the terms of the agreement, Broadcom will purchase BroadLight for $195 million in cash. An additional $10 million in cash will be put aside for future payment to BroadLight's stockholders.
Set to close in Broadcom's Q2 2012, the company believes the acquisition of BroadLight will be roughly neutral to its 2012 earnings per share.
Last December, a report emerged that Broadcom was putting together a deal to acquire Broadlight for about $200 million.
Both companies have been working together since 2004 when Broadcom made an investment in the company as it was developing GPON processors for Optical Line Terminal (OLT) equipment housed in the telco CO and CPE like home gateways.
- see the release