Broadcom Corp. (BRCM) announced that it has signed a definitive agreement to acquire Teknovus, a supplier of Ethernet Passive Optical Network or EPON chipsets and software. In connection with the acquisition, Broadcom expects to pay about $123 million to acquire all of the outstanding shares of capital stock and other rights of Teknovus.
The purchase price will be paid in cash, with a portion placed into escrow pursuant to the terms of the acquisition agreement. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects that the acquisition of Teknovus will be about neutral to earnings per share in 2010.
The boards of directors of the two companies have approved the merger. The closing, which is expected to occur in the first or second quarter of this year, remains subject to the satisfaction of regulatory requirements and other customary closing conditions.
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