Broadcom paid $42 million to snap up security software developer SC Square.
manufacturer Broadcom announced that it has signed a definitive agreement to
acquire SC Square, a security software developer based in Israel, for
approximately $41.9 million. The purchase price will be paid in cash, with a
portion of the consideration placed into escrow pursuant to the terms of the
any purchase accounting related adjustments and fair value measurements,
Broadcom expects the acquisition of SC Square to be dilutive to earnings for
the remainder of 2011 by approximately $0.01. The boards of directors of the
two companies have approved the acquisition.
companies noted the transaction remains subject to the satisfaction of closing
conditions and is expected to close in Broadcom's second quarter, ending June
30, 2011. The acquisition is part of Broadcom's strategy to acquire innovative
technologies and high-quality teams with a solid track record of execution,
according to a company release.
products are designed to enable the delivery of voice, video, data and
multimedia to and throughout the home, the office and the mobile
environment. The company provides a broad portfolio of system-on-a-chip
and embedded software solutions to manufacturers of computing and networking equipment,
digital entertainment and broadband access products, and mobile devices. One of
the world's largest fabless communications semiconductor companies, Broadcom
closes out 2010 with revenue of $6.82 billion.
April, Broadcom completed the acquisition of Provigent, a provider of highly
integrated, high performance, mixed signal semiconductors for microwave
backhaul systems. Broadcom paid approximately $313 million, net of cash
assumed, to acquire all of the outstanding shares of capital stock and other
rights of Provigent.
year, the company acquired Beceem Communications, a provider of 4G wireless
platform solutions, for an estimated $316 million. The acquisition, gave
Broadcom access to Beceem's solutions for LTE (Long Term Evolution) and WiMax
(Worldwide Interoperability for Microwave Access), the two standards associated
with 4G cellular services. Privately held Beceem has announced a 4G multimode
platform for both LTE and WiMax 4G networks that support peak broadband
download speeds of up to 200M bps.
company also recently announced its latest StrataXGS high-performance switch
solution, designed specifically to manage the growth in wireless data traffic
and carrier transition to 4G mobile networks. Mobile backhaul expenditures are
expected to reach $8 billion by 2014, according to a 2010 iSuppli report.
the emergence of 4G, the last-mile backhaul is critical because poor
performance in the backhaul creates bottlenecks that limit growth and diminish
quality of service," said Michael Howard, principal analyst for carrier and
data center networks for IT research firm Infonetics. "We anticipate mobile
operators' spending on the mobile backhaul to grow substantially over the next
several years as they develop an efficient and effective last-mile
backhaul. We are seeing the emergence of the Ethernet protocol as the most
optimal solution to address the capacity and economic issues facing carriers