FEBRUARY 3, 2010 -- Broadcom Corp., maker of semiconductors for wired and wireless communications, has signed a definitive agreement to acquire Teknovus, a supplier of Ethernet Passive Optical Network (EPON) chipsets and software.
EPON is a technology providing broadband services at up to 10 Gigabits per second over fiber optic cables. According to the Dell'Oro Group, the Asia Pacific PON market is expected to grow from 22.8 million to 94.5 million subscribers by 2014.
In connection with the acquisition, Broadcom expects to pay approximately $123 million to acquire all of the outstanding shares of capital stock and other rights of Teknovus. Broadcom expects that the acquisition of Teknovus will be approximately 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.