Broadcom Will Acquire Renesas Electronics Tech and 2 More Heavily Traded Stocks to Follow
Broadcom Corp. (NASDAQ:BRCM): Current price $25.92
On Wednesday, Broadcom said that it will purchase Renesas Electronics Corp.’s LTE tech for $164 million in order to accelerate the launch date of its next generation of products next year. Long-term evolution is a manner of delivering high-speed data for mobile phones. The buyer said that it expects the transaction with the Japanese chipmaker to add to its adjusted earnings per share by 2015, but the acquisition will cut into adjusted earnings per share by 12 cents in the fourth quarter and by 10 to 15 cents in 2014. The parties’ boards have already okayed the deal and it should close early in fourth quarter.