Broadcom to buy security software developer

Broadcom Corp. signs an agreement to acquire SC Square Ltd, a security software developer based in Israel and will gain an expert team of engineers focused on security, which is an essential ingredient across Broadcom platforms.

This acquisition is going to be a part of Broadcom's strategy to acquire innovative technologies and high quality teams with a solid track record of execution.

In connection with the acquisition, Broadcom expects to pay approximately Rs.187.05 crore ($41.9 million), net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of SC Square. The purchase price will be paid in cash, with a portion of the consideration placed into escrow pursuant to the terms of the acquisition agreement. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects the acquisition of SC Square to be dilutive to earnings for the remainder of 2011 by approximately Rs.0.45 ($0.01). The boards of directors of the two companies have approved the acquisition. The transaction remains subject to the satisfaction of closing conditions and is expected to close in Broadcom's second quarter, ending June 30, 2011.