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Technology Stocks : Alliance Semiconductor (ALSC) To Acquire Stake In Broadcom -- Ignore unavailable to you. Want to Upgrade?

To: Norrin Radd who wrote (11)	4/25/1999 6:58:00 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 16

Sunday April 25 5:00 PM ET Broadcom To Buy Epigram For $316 Mln NEW YORK (Reuters) - Communications gear maker Broadcom Corp. (Nasdaq:BRCM - news) said Sunday it plans a $316 million acquisition of networking equipment manufacturer Epigram Inc. in a move to offer high-speed communications to a broader range of home and small office consumers. Broadcom -- whose products are featured in set-top cable television boxes and computer modems -- plans to integrate Epigram's technology to provide broadband access and high-speed connections among PCs and electronic appliances. Sunnyvale, Calif.-based Epigram's networking semiconductor products allow consumers to create high-speed home networks over ordinary telephone lines for distributing broadband Internet access, video transfer and voice at high speeds. Broadcom, which is located in Irvine, Calif., said it had signed an agreement to acquire Epigram. Under the terms of the deal, it will issue 4.6 million shares of its class B common stock in exchange for all shares of Epigram preferred and common stock. The $316 million pricetag is based upon Broadcom's April 23 closing share price of $68.75. The merger transaction is expected to close within 90 days, pending Epigram shareholder approval and satisfaction of regulatory requirements and closing conditions. ''This strategic acquisition completes our vision of extending the broadband connection throughout the home,'' Broadcom President and Chief Executive Henry Nicholas III said in a statement. ''It will enable the ubiquitous delivery of voice, data and video to any network-enabled appliance, PC or consumer electronic device over ordinary phone lines,'' Nicholas said. ''This will provide a complete, standards-based silicon platform for a host of new consumer devices and applications.'' Epigram will become Broadcom's Home Networking Division and will be headed up by Epigram President and Chief Executive Jeff Thermond. In February, leading chip maker Intel Corp. (Nasdaq:INTC - news) made a Securities and Exchange Commission filing announcing that it acquired a 3.9 percent stake in Broadcom.