Broadcom to pay $313 million for Provigent
Earlier this month, the English language version of Israeli business daily Globes reported that Broadcom was negotiating to buy Provigent, a provider of mixed-signal chips for microwave backhaul systems, for between $300 million and $400 million.
Broadcom (Irvine, CA) said that the addition of Provigent’s engineering expertise in microwave radio products would enable the company to expand its portfolio to more thoroughly address the $5 billion microwave backhaul equipment business.
"Provigent is a unique asset with world-class microwave backhaul technology and strong engineering talent developing innovative and highly integrated semiconductor solutions for the microwave segment," said Rajiv Ramaswami, executive vice president and general manager of Broadcom’s Infrastructure and Networking Group, in a statement. "Combining their microwave backhaul solutions with our industry leading network infrastructure and wireless solutions allows us to better serve our customers and expand our addressable market."
In connection with the acquisition, Broadcom said it expects to pay approximately $313 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of Provigent. The purchase price will be paid in cash, except that a portion attributable to certain unvested employee stock options will be paid in Broadcom restricted stock units, Broadcom said. The company said it expects the acquisition of Provigent to be neutral to earnings in 2011.
The boards of directors of the two companies have approved the merger, Broadcon said. The transaction is expected to close in Broadcom’s second quarter, 2011, and remains subject to the satisfaction of regulatory requirements and other customary closing conditions, according to Broadcom.