Chipmaker Broadcom ( BRCM ) said it will pay up to $77.5 million to acquire privately-held Sand Video, an Andover, Mass.-based company that develops advanced video compression semiconductor technology.

Irvine Calif.-based Broadcom said the deal is worth about $70.1 million in the form of 1.666 million shares of its class A common stock, based on its closing price of $42.05 Tuesday and $7.4 million in cash.

"The acquisition of Sand Video and its advanced technology will allow us to offer customers more complete solutions that support all of the major existing and emerging video compression formats, as well as enable customers to bring their products to market more rapidly," Broadcom said in a statement.

In its most recent quarter, Broadcom posted net income of $6.1 million, or 2 cents a share, compared with a net loss of $1.76 million a year earlier. On a pro forma basis, EPS was 19 cents a share, 4 cents above expectations, with fourth-quarter revenue up 62% to $479.1 million.

Broadcom releases its first-quarter earnings April 22.

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