Broadcom To Acquire Teknovus For $123 Million

February 3, 2010 - Broadcom Corp. said Wednesday it had agreed to acquire Teknovus, a chipset and software provider that enables broadband Internet services over fiber optic cables, for $123 million in cash.

Broadcom said it expects the purchase to occur by June. The transaction remains subject to regulatory approval and other closing conditions. It said it expects the purchase to be neutral to earnings per share in 2010.

The type of technology Teknovus provides accounts for 94 percent of fiber optic cable connections to homes in the Asia-Pacific region, the company said.

The announcement came on the same day Broadcom announced a $59.2 million net profit in the fourth quarter, reversing a loss, despite a large charge to settle a stock-option backdating case against the company.

Shares fell 40 cents to $28.28 in after-hours trading Wednesday, after closing down 14 cents at $27.89.