SAN FRANCISCO--Broadcom Corp. has decided to acquire Israeli networking and embedded processor developer Broadlight Ltd. for approximately $200 million according to Israeli business news sources.
Business daily "TheMarker" reported that the firms, who have long been in acquisition talks, had signed a letter of intent recently citing that Broadcom would purchase Broadlight for between $230-340 million. No sources were cited.
The companies have been working together since 2004, when Broadcom made an initial investment into the firm, whose processors provide fiber grade quality of service delivery for central office and customer premise equipment.
Back in 2009, Broadcom bought Teknovus, a firm specializing in Ethernet Passive Optical Network (EPON) chipsets and software, and itís believed that the Broadlight acquisition would complement the portfolio with its Gigabit Passive Optical Network (GPON).
Established in 2000, Broadlight is a private company with headquarters in Herzliya, Israel, and with offices in Santa Clara, CA, China,Taiwan and Korea.