Wednesday, February 19, 2014

QLogic Buys Ethernet Line From Broadcom In $147M Deal

Aliso Viejo-based storage networking hardware provider QLogic is moving further into the Ethernet market, via the purchase of an entire line of Ethernet hardware from Irvine-based Broadcom, the two said late Tuesday. According to the companies, QLogic will pay $147M in cash for certain 10/40/100Gb Ethernet controller-related assets and non-exclusive licenses to certain intellectual property which are related to Broadcom's NetXtreme II Ethernet controller family. In addition, the two companies said they've entered into a long term supply agreement where Broadcom will become the ASIC supplier to QLogic for its NetXtreme II product line. Broadcom said the move will help it provide a "broader solution portfolio" to its customers. In addition to the acquisition, the two said QLogic will license certain Broadcom patents to cover its Fibre Channel products for $62M.