Broadcom, a provider of semiconductors for wired and wireless communications, has signed an agreement to acquire SC Square, a security software developer based in Israel.
With SC Square, Broadcom is acquiring an expert team of engineers focused on security, which is an essential ingredient across Broadcom platforms. This acquisition is part of Broadcom’s strategy to acquire technologies and high-quality teams with a solid track record of execution.
In connection with the acquisition, Broadcom expects to pay approximately US$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 $0.01. The boards of directors of the two companies have approved the acquisition.