Broadcom to Acquire LTE-Related Assets from Renesas

in News, Broadcom, Renesas Electronics, LTE
Broadcom LTE-Advanced

Broadcom Corporation has entered in to a definitive agreement to acquire LTE-related assets from affiliates of Renesas Electronics Corporation in $164 million. Company expects to accelerate availability of Broadcom's first multimode, carrier-validated LTE SoC platform into early 2014 with this acquisition. 

With this deal, Broadcom is gaining a dual-core LTE SoC that is ready for volume production and is carrier-validated by leading global operators in North America, Japan and Europe. Broadcom also receives high-quality multimode, multiband, LTE-A/HSPA+/EDGE modem IP that includes support for leading-edge features such as Carrier Aggregation and VoLTE. The acquisition adds quality patents and applications to Broadcom's IP portfolio .

In connection with the acquisition, Broadcom expects to pay approximately $164 million in cash. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom currently expects this transaction 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. However, 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. 

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