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Broadcom To Buy LTE-related Assets From Renesas Affiliates; Updates Q3 Outlook

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Broadcom Corp. (BRCM: Quote) announced a definitive agreement to acquire LTE-related assets from affiliates of Renesas Electronics Corporation. In connection with the acquisition, Broadcom expects to pay approximately $164 million in cash. Broadcom also updated its business outlook for the three months ending September 30, 2013. The company now expects revenue between $2.075 billion and $2.175 billion.

Analysts polled by Thomson Reuters expect the company to report revenue of $2.13 billion for the third quarter.

Excluding any purchase accounting related adjustments and fair value measurements, Broadcom currently expects the acquisition to be dilutive to earnings per share on a non-GAAP basis by approximately $0.12 in the three months ending December 31, 2013 and dilutive to non-GAAP earnings per share by $0.10-$0.15 in full year 2014. Broadcom currently expects the transaction to be roughly neutral to non-GAAP earnings per share by the second half of 2014 and is expected to be accretive to non-GAAP earnings per share in 2015.

Broadcom expects the acquisition to accelerate availability of its first multimode, carrier-validated LTE SoC platform into early 2014. The acquisition adds quality patents and applications to Broadcom's IP portfolio.

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by RTT Staff Writer

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