Broadcom to Buy Chip Firm

The deal is valued at around $80 million.
Author:
Publish date:

Broadcom

(BRCM)

agreed to acquire Sandburst, a privately held fabless semiconductor company based in Andover, Mass., in a deal valued at around $80 million.

The terms include $75 million in cash and up to 100,000 Class A Broadcom common shares. Broadcom, Irvine, Calif., may record a one-time charge for purchased in-process research and development expenses. The amount of the charge, if any, hasn't yet been determined.

"By acquiring Sandburst, Broadcom is poised to accelerate the convergence of triple-play traffic in service-provider networks," Broadcom, a communications-chip maker, said in a press release Monday. "Furthermore, we will be well-positioned to catch the next wave of the burgeoning Metro Ethernet market."

Shares of Broadcom were gaining 52 cents to $56.90 in premarket trading.