RVINE, Calif. and SANTA CLARA, Calif., March 18, 2005 -- Broadcom Corporation (Nasdaq: BRCM), a global leader in wired and wireless broadband communications semiconductors, today announced that it has completed the acquisition of Zeevo, Inc., a leading provider of semiconductor solutions for Bluetooth® wireless headset products, located in Santa Clara.
Zeevo has introduced multiple generations of semiconductor and software solutions specifically optimized for the unique needs of stereo wireless headsets, all of which are proven in the market and shipping in volume production. By combining Broadcom's existing strengths, customer relationships, presence in complementary markets, and proven Bluetooth solutions with Zeevo's technology and innovative solutions, Broadcom's customers will benefit from a stronger product portfolio, optimized total solutions, enhanced support and a more comprehensive roadmap.
Broadcom is a leading supplier of semiconductor solutions for Bluetooth wireless applications and was first to market with a Bluetooth-qualified single-chip radio. Broadcom's Blutonium® line of products includes devices for mobile phones, PCs and PDAs, as well as application-specific chips for cellular phones and wireless mouse and keyboard applications. The addition of Zeevo's products to the Blutonium portfolio will allow Broadcom to immediately offer solutions for the wireless headset segment of the Bluetooth market, a segment which analyst firm In-Stat/MDR estimates will grow to nearly 90 million units per year by 2008.
In connection with the acquisition, Broadcom paid a total of $32.0 million - approximately $31.3 million in cash consideration and $0.7 million in restricted stock units that entitle the holder to receive shares of Broadcom Class A common stock as the award vests - in exchange for all outstanding shares of capital stock and other rights, and to satisfy certain outstanding obligations and transaction expenses, of Zeevo. A portion of the consideration paid will be subject to escrow pursuant to the terms of the acquisition agreement. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in its first fiscal quarter, ending March 31. The amount of that charge, if any, has not yet been determined.
About Broadcom
Broadcom Corporation is a global leader in wired and wireless broadband communications semiconductors. Our products enable the convergence of high-speed data, high definition video, voice and audio at home, in the office and on the go. Broadcom provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions. These solutions support our core mission: Connecting everything®.
Broadcom is one of the world's largest fabless semiconductor companies, with annual revenue of more than $2 billion. The company is headquartered in Irvine, Calif., with offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at 1-949-450-8700 or at www.broadcom.com.
"Forward-Looking" Statements are omitted