Larry...There has been talk for sometime that BRCM was in purchase mode for an encoder chip...around the same time SFA announced its choice of VisionTech...
Good luck,
Eric
Message 14894143
Tuesday November 28 10:16 AM ET
Broadcom to Buy Set-Top Box Chip Maker
IRVINE, Calif. (Reuters) - High-speed communications chip maker Broadcom Corp. (NasdaqNM:BRCM -
news) on Tuesday said it would buy privately held VisionTech Ltd. to create the next generation of technology that
will allow television viewers nearly total control of program presentation.
Broadcom said it would issue about 7.96 million shares of its Class A common stock in exchange for substantially
all the assets of VisionTech -- its 12th acquisition this year and its 17th since January 1999. Based on Broadcom's
closing share price of $97-9/16 on Monday, the deal is worth about $777 million.
Broadcom shares were down $1 to $96-9/16 in morning trade on the Nasdaq stock market.
Chips made by VisionTech, which is based in Herzliya, Israel, are used in set-top boxes providing Personal Video
Recording (PVR), which enables TV viewers to freeze a live program, instantly replay or rewind a program being
watched, and skip ahead in a recorded program.
PVR unit shipments are expected to increase 275 percent each year between 2001 and 2003, to 8 million annually,
according to research firm Cahners In-Stat.
VisionTech chips are used in set-top boxes made by Motorola Inc. (NYSE:MOT - news), Scientific-Atlanta Inc.
(NYSE:SFA - news), Pace, Microsoft Corp. (NasdaqNM:MSFT - news) and PVR pioneer Replay TV.
VisionTech will form the core of Broadcom Israel, a new subsidiary that will be managed by Amir Morad,
VisionTech's president and chief executive.
The deal, already approved by the boards of directors of both companies, is expected to close within 60 days.
Broadcom said it expects to record a one-time charge for in-process research and development related to the
acquisition. It gave no estimate of the charge. |
