Broadcom Acquires Security Software Developer SC Square For $42 Million

Consumer device chip maker Broadcom has acquired SC Square, a security software maker based in Tel Aviv, Israel, the company announced over the weekend.

Broadcom will pay $41.9 million, net of cash, to purchase all of the outstanding shares of capital stock and other equity rights of SC Square, which provides a number of chip security and communication products and solutions.

SC Square is a subsidiary of Nisko Projects & Communications, a high-tech company listed on Israel’s stock exchange.

Broadcom says, with the acquisition, it is gaining a team of architects and engineers focused on security, which it deems an ‘essential ingredient’ across its platforms.

The company just two weeks ago announced that it had acquired Provigent, which makes semiconductors for microwave backhaul systems, for $313 million. They also recently purchased Gigle Networks for more than $75 million.

Broadcom expects the acquisition of SC Square to be dilutive to earnings for the remainder of 2011 by approximately $0.01. The transaction is expected to close in Broadcom’s second quarter, ending June 30, 2011.

Broadcom provides system-on-a-chip and embedded software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices.

The company’s revenue for 2010 was $6.82 billion, up 52 percent from the previous year. The fabless semiconductor company recently reported net income of $1.08 billion for last year.