Broadcom acquires Fiber-Optic Network Chip Company

Broadcom (BRCM) said the deal, valued at $195 million, will expand its broadband access portfolio to support next-generation fiber networks.

"The need for increased bandwidth for IPTV services, HDTV broadcasting and high speed Internet access are driving momentum for deploying fiber networks," Dan Marotta, executive vice president and general manager of Broadcom's Broadband Communications Group, said in a statement.

Combining BroadLight's passive optical network processors with its own broadband technologies, Broadcom will be able to offer customers a complete end-to-end fiber network solution, he said.

Broadcom expects the acquisition of BroadLight to have no impact on earnings per share in 2012. The transaction is expected to close in Broadcom's second quarter, pending regulatory approvals.

Established in 2000, BroadLight is headquartered in Herzliya, Israel, with offices in China, Taiwan, Korea and Santa Clara, Calif.

Broadcom shares were up a fraction in early afternoon trading Wednesday.