Orange County Business Journal

Broadcom Buying Israeli Chip, Software Developer

Chris Casacchia Monday, May 9, 2011

Irvine chipmaker Broadcom Corp. is set to acquire SC Square Ltd., an Israel-based developer of security software, for $42 million.

In the cash deal, Broadcom is set to buy all shares and other equity rights of SC Square.

SC Square makes chips and software used in smart cards for making electronic payments, gaining access to networks and buildings and others uses.

The boards of directors of each company have approved the deal, which is expected to close in the current quarter.

The purchase is expected to slightly dilute profits this year, according to Broadcom.

This move continues Broadcom’s history of tapping Israel to expand services or build infrastructure.

Last month it bought Israel-based Provigent Inc., a maker of chips for wireless network operators that allow for the transfer of voice, data and video signals from cellular base stations to their main network.

The chips are seen as a key part of a push by wireless service providers to offer faster downloads of information, video and music on their phones.

The pending buy of Provigent brings Broadcom’s acquisition of Israeli companies to eight.

Recent ones include Percello Ltd. for $86 million and Sightic Vista Ltd. for an undisclosed amount in November.

Broadcom makes chips for computers, networking and consumer electronics and cell phones.

Broadcom is Orange County’s biggest chipmaker with $6.6 billion in yearly sales, good enough to recently crack the top 10 of the largest chipmakers in the world for the first time.