RealTime IT News

Broadcom Nabs Altima

Broadcom Corp, , a provider of integrated circuits enabling high-speed broadband communications, Monday purchased Altima in a deal valued at more than $533 million.

As part of the definitive agreement, Broadcom will exchange about 2.5 million shares of its Class A common stock for all outstanding shares of Altima preferred and common stock and outstanding employee stock options.

The deal is expected to close within two months

Officials said the acquisition of Altima, a supplier of networking integrated circuits for the small-to-medium business networking market, will speed its penetration in that market.

"By combining forces with Broadcom, our team will help accelerate introductions of next-generation solutions for the SMB market," said Stewart Wu, president and chief executive of Altima.

The SMB market for 10/100 switches and hubs is forecasted to more than double this year, and to reach 58 million ports by 2001, according to The Dell'Oro Group, a market research firm.

Broadcom plans to retain the Altima brand name for the SMB product line, taking advantage of the company's established identity in Asia, where a majority of SMB manufacturers reside.

"Altima's well-established infrastructure in Asia will strengthen our presence and enable us to better serve our customers engaged in the high-growth SMB market segment," said Henry T. Nicholas III, Broadcom president and chief executive.