Broadcom Completes Acquisition of Octalica, Inc.
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Press release date: May 29, 2007
IRVINE, Calif. and NEWTON CENTRE, Mass., May 29: Broadcom Corporation (NASDAQ:BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has completed the acquisition of Octalica, Inc. Octalica is a privately-held fabless semiconductor company that specializes in the design and development of networking technologies based on the MoCA(TM) (Multimedia over Coax Alliance) standard, which enables distribution of high quality digital multimedia content throughout the home over existing coaxial cable.
On May 3 Broadcom announced a definitive agreement to acquire Octalica, noting that MoCA has emerged as a popular method for in-home multimedia distribution among cable, satellite and telecommunications service providers in the U.S., making Octalica's product portfolio a strong complement to Broadcom's industry leading set-top box and broadband access technologies. With this acquisition, Broadcom is adding MoCA to the multiple other technologies it offers to address end users' connectivity needs worldwide for the distribution of digital content throughout the home, supplementing its industry leading Wi-Fi®, Ethernet, and Bluetooth® products, among others.
In connection with the acquisition, Broadcom paid approximately $31 million in cash in exchange for all of the outstanding shares of Octalica's capital stock and other rights of Octalica. A portion of the consideration payable to the stockholders of Octalica was placed into escrow pursuant to the terms of the acquisition agreement. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in the second quarter of 2007. The amount of that charge, if any, has not yet been determined.
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art, system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.
Broadcom is one of the world's largest fabless semiconductor companies, with 2006 revenue of $3.67 billion, and holds over 2,000 U.S. and 800 foreign patents, more than 6,000 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video and data.
Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at http://www.broadcom.com/.
Source: Broadcom Corporation; BRCM Broadband
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