Broadcom buys ServerWorks
Chip giant Broadcom is to buy server chipset maker ServerWorks in a $975 million deal.
Broadcom said today it would issue 11 million shares in exchange for all outstanding stock in the fellow Californian outfit. The acquisition is the latest in a stack by Broadcom, which specialising in making semiconductors for cable modems, and is aimed at pushing it further into the high-speed communications arena.
The purchase, expected to close within 60 days, will add between two to three cents a share to Broadcom's earning's per share in each quarter of this year, the company said.
ServerWorks CEO Raju Vegesna will be VP and general manager of Broadcom's ServerWorks Business Unit - which will be a wholly-owned Broadcom subsidiary.
"This acquisition is very strategic to our mission of delivering end-to-end broadband solutions for higher-speed Internet and e-business connectivity," said Dr Henry Nicholas III, Broadcom president and CEO.
Last year Broadcom shelled out for around a dozen companies, including Israeli chipmaker VisionTech and UK firm Element 14.
It also recently patched up its differences with rival Intel - the two had been embroiled in a series of claims and counter claims in 2000 over the alleged poaching of trade secret and patent infringement. ®