BROADCOM TO ACQUIRE NEWPORT FOR ABOUT $1.32 BILLION IN STOCK.Broadcom Broadcom Corporation is an American supplier of integrated circuits (ICs) for broadband communications. Founded in 1991 by Henry Samueli (chairman and CTO) and Henry Nicholas, it became a public company in 1998 and now employs over 5,000 people worldwide. Corp. said it agreed to acquire NewPort Newport, town, England Newport, town (1991 pop. 19,758), Isle of Wight, S England. It is also a port and the commercial center of the island, with agricultural markets and light industries (plastics, soft drinks, and woodworking). In the 17th cent. Communications Inc. for approximately $1.32 billion in stock, Broadcom's third major move in as many months to supply chips for big telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. . Broadcom makes semiconductors for computer-networking equipment. Its chips have traditionally been used primarily in office networks and access equipment, such as cable modems cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. . Now, the Irvine, Calif., company is making a big push to penetrate the bigger networks that form the backbone of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Broadcom offered to pay 5.5 million shares for NewPort. Broadcom executives told analysts the acquisition, which it expects to close in 60 days, would reduce earnings per share by approximately one cent in the fourth quarter of this year and the first two quarters of next year. After that, Broadcom projects the acquisition will boost its earnings. Broadcom said it would account for the acquisition as a purchase and take a one-time charge, which wasn't specified, in the third quarter. |
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