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Update: Broadcom to Buy SiByte

Broadcom will issue up to 9.03 million shares in exchange for SiByte.
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Updated from 8:19 a.m. ET

Broadcom

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, a maker of gear for high-speed communications networks, said Monday that it had agreed to buy privately held chipmaker

SiByte

.

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In a statement, Irvine, Calif.-based Broadcom said it would issue up to 9.03 million shares in exchange for SiByte. Based on Friday's close of $222.38 for Broadcom shares, the deal is worth around $2.07 billion.

About 5.6 million of the shares will be issued at the close of the acquisition, which is expected in about 60 days. An additional 3.7 million shares will be issued in the future to shareholders in Santa Clara, Calif.-based SiByte, provided certain performance goals are met.

The boards of directors of both companies have approved the deal, and now await the go-ahead from SiByte's shareholders.

Cisco Systems

(CSCO) - Get Cisco Systems, Inc. Report

, the market leader in networking and communications equipment, was an early investor in SiByte.

Broadcom finished down $3.38, or 2%, at $219.