Date: 15/03/2010

Broadcom completes acquisition of EPON chip developer Teknovus

Broadcom has completed the acquisition of EPON chips developer Teknovus. EPON chips are extensively used in FTTH and wireless broadband backhaul networks. Teknovus offers chips for optical line terminals and optical network units and also the embedded software for its chips.

EPON chip market is a growing market due to the growth in optical wired networks supporting very high bandwidth.

Broadcom said it has paid approximately $123 million to acquire all of the outstanding shares of capital stock and other rights of Teknovus. The purchase price was paid in cash, with a portion placed into escrow pursuant to the terms of the acquisition agreement.

Through this acquisition, Braodcom gains advantage over its competitors such as PMC Sierra in wired communication networks by expanding its portfolio of leading ICs for wired communication market.