Broadcom Corp. Wednesday acquired Pivotal Technologies, in a deal valued at $242.5 million.
As part of the transaction, Broadcom will issue in aggregate
approximately 1.94 million shares of its Class B common stock, in exchange
for all outstanding shares of Pivotal preferred and common stock and upon
exercise of outstanding employee stock options and other rights of Pivotal.
Shares of Broadcom’s Class B common stock are identical to its Class A
common stock, except for
certain voting rights.
Broadcom additionally expects to record an unspecified one-time charge in its second
fiscal quarter ending June 30 to cover related expenses.
The boards of directors of both companies have approved the merger, which
awaits approval by Pivotal shareholders and
the satisfaction of regulatory requirements among other conditions.
Broadcom is a provider of
integrated
circuits enabling high-speed broadband communications.
Pivotal Technologies is a fabless semiconductor company specializing in
the development of digital visual interface solutions.
The union will provide new opportunities for wireless
communications in the personal area network, according to K.C. Murphy,
president and chief executive officer of Pivotal.
“We look forward to extending our DVI efforts from PCs to
consumer appliances and to developing the full potential of DVI as a
high-performance communications link,” Murphy said. “In addition, our
combined RF efforts
should yield performance and cost benefits that translate into value that
will be attractive to OEM’s and consumers.”