Broadcom to buy security chip developer SC Square for $42m

The security software developer is Broadcom's ninth acquisition in Israel.

Wireless communications company Broadcom Corporation (Nasdaq: BRCM) has announced that it is acquiring security software developer SC Square Ltd. for $41.9 million in cash. Headquartered in Tel Aviv's Ramat Hahayal district, SC Square is a subsidiary of Nisko Projects Electronics and Communication (TASE:NSPR).

In reporting the acquisition, Broadcom said, "With SC Square Ltd., Broadcom is acquiring an expert team of engineers focused on security, which is an essential ingredient across Broadcom platforms. This acquisition is part of Broadcom's strategy to acquire innovative technologies and high quality teams with a solid track record of execution."

Broadcom said that the boards of directors of the two companies have approved the acquisition, and that the transaction remains subject to the satisfaction of closing conditions and is expected to close in Broadcom's second quarter, ending June 30, 2011.

SC Square is Broadcom's ninth acquisition in Israel and fourth acquisition since October 2010. The company bought semiconductor developer Provigent for 340 million in March 2011, image processing company Sightic Vista for $10-20 million in November 2010, and femotocell co Percello Ltd. for up to $98 million in October 2010.

Broadcom has hundreds of Israeli employees in eight centers around the country in Park Yakum, Airport City, Ramat Gan, Or Yehuda, Netanya, Herzliyah, Ra'anana, and Tel Aviv.

Published by Globes, Israel business news - www.globes-online.com - on May 9, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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