BRCM: Broadcom Completes Acquisition of LVL7 Systems, Inc.

Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has completed the acquisition of LVL7 Systems, Inc, a privately-held developer of production-ready networking software that enables networking original equipment manufacturers (OEMs) and original design manufacturers (ODMs) to reduce development expenses and compress development timelines.
On November 29, Broadcom announced a definitive agreement to acquire LVL7, noting that LVL7's FASTPATH® family of software will enable Broadcom to enhance its existing product offering in the small-to-medium-sized business (SMB) market segment. OEMs targeting the SMB market will benefit from the additional software capability that Broadcom is adding to its existing platforms because a complete software solution enables those customers to get new systems to market quickly and cost effectively.

In connection with the acquisition, Broadcom paid total consideration of approximately $62 million in cash to acquire outstanding shares of capital stock and vested stock options of LVL7 and liquidate outstanding LVL7 debt. A portion of the cash consideration payable to the stockholders was placed into 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 the first quarter of 2007. The amount of that charge, if any, has not yet been determined.