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.
