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Accueil> Blog> Broadcom acquires Teknovus and acquires EPON technology

Broadcom acquires Teknovus and acquires EPON technology

August 18, 2021

Broadcom acquires Teknovus and acquires EPON technology

Broadcom, the world leader in the wired and wireless communications semiconductor market, announced today that it has signed the final agreement to acquire Teknovus, a leading Ethernet passive optical network (EPON) chipset and software provider. EPON technology can provide broadband services at a rate of up to 10Gbps through optical cables. In FTTx (for example, fiber-to-the-home) connections in the Asia-Pacific region, connections using EPON technology account for about 94%. According to the research of Dell'Oro Group, by 2014, the PON market in the Asia-Pacific region is expected to grow from the current 22.8 million users to 94.5 million users, with a compound annual growth rate of 33% (2009-2014) (1)

MarTIn Lund, senior vice president and general manager of the network switching business department of Broadcom, said: "Teknovus has competitive products and has built a credible reputation among our existing customers. Broadcom currently has a switch for the service provider market. , DSL, GPON and cable TV solutions, these solutions cover everything from network access to the core of the network. Teknovus products add an important element to our existing service provider product line, which will enable us to Well serve customers in this market. "

Greg Caltabiano, President and CEO of Teknovus, said: “Broadcom ’s Ethernet switching expertise is world-renowned. As the EPON market develops and expands, the technologies of our two companies can be combined to achieve higher performance and lower cost. EPON access infrastructure. "

Regarding this acquisition, Broadcom is expected to pay approximately $ 123 million to acquire all issued shares in the total share capital and other rights of Teknovus. The acquisition will be paid in cash, and part of the cash will be temporarily handed over to a third party for custody in accordance with the terms of the acquisition agreement. Broadcom expects that, excluding any adjustments and fair value measurements related to merger and acquisition accounting, the impact of the acquisition of Teknovus on 2010 earnings per share is estimated to be neutral. The boards of both companies have approved the merger. The acquisition is expected to end in the first or second quarter of this year, but the end time still depends on whether it meets regulatory requirements and other customary conditions that affect the end of the acquisition.

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