Broadcom buying Renesas LTE technology for $164M
IRVINE, Calif. (AP) — Communications chipmaker Broadcom Corp. says it will acquire Renesas Electronics Corp.'s LTE technology for $164 million to help speed up the launch of its next generation of products in 2014.
LTE, the industry term for long-term evolution, is a means of delivering high-speed data for mobile phones.
The Irvine, Calif., company said Wednesday that it expects the deal with the Japanese chipmaker will add to its adjusted earnings per share by 2015. The acquisition will cut into adjusted earnings per share by 12 cents in the fourth quarter and by 10 to 15 cents next year.
Broadcom and Renesas Electronics' boards have already approved the deal and it is expected to close early in the quarter ending December 31.
The Irvine, Calif., company on Wednesday also narrowed its revenue guidance for the third quarter to between $2.08 billion and $2.18 billion from its prior forecast of $2.05 billion to $2.2 billion.
Analysts polled by FactSet, on average, were anticipating revenue of $2.13 billion.
Shares of Broadcom increased 53 cents, or 2.1 percent, to $25.71 in afternoon trading.