IRVINE, CA — Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has completed the acquisition of Gigle Networks Inc., a privately-held company that develops system-on-a-chip (SoC) solutions for home networking over power lines.
In connection with the acquisition, Broadcom paid approximately $75 million to acquire all of the outstanding shares of capital stock and other rights of Gigle Networks Inc. The purchase price was paid in cash, except that holders of unvested employee stock options will receive Broadcom equity awards. A portion of the cash consideration payable to the stockholders was placed into escrow. Additional consideration was reserved for future payment upon satisfaction of certain performance goals. Excluding any purchase accounting related adjustments or fair value measurements, Broadcom expects the acquisition of Gigle Networks Inc. to be dilutive by approximately $0.01 per share in 2011.