Broadcom Corporation (NASDAQ:BRCM) has announced that they have signed an agreement to acquire LTE related assets from Renesas Electronics Corporation for $164 million in cash. This acquisition is expected to help accelerate the availability of Broadcom’s first multimode, carrier-validated LTE system-on-chip (SoC) platform into early 2014.
?Today?s transaction firmly establishes Broadcom?s presence in the rapidly growing LTE market with a production-ready, carrier-validated SoC. Our LTE platform will leverage Broadcom?s rich connectivity portfolio and will deliver an optimized feature set for this fast growing market,? stated Broadcom Corporation (NASDAQ:BRCM) CEO and president Scott McGregor.
The transaction is expected to be dilutive to adjusted earnings per share by about 12 cents for Q4 and dilutive to adjusted earnings per share by 10 cents to 15 cents in fiscal 2014.
Broadcom Corporation (NASDAQ:BRCM) tightened their revenue expectations for the third quarter. The company is expecting revenues to be at between $2.075 billion and $2.175 billion versus earlier estimates of $2.05 billion and $2.20 billion. Wall Street was expecting the company to hit around $2.13 billion.