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Broadcom buys Newport to strengthen fibre nets

By Felicity Ussher

Published: 15 August 2000 11:55 GMT

Broadcom, the US-based manufacturer of optical networking, plans to acquire fibre optic specialists, NewPort Communications, for $1.24bn.

NewPort specialises in developing integrated circuits, which boost the bandwidth capacity of optical fibre networks

Broadcom CEO, Henry Nicholas, said NewPort would provide the communications interface for high-speed fibre-optic internet technology.

The deal, which will be an all-stock transaction, follows Broadcom's acquisition of Silicon Spice - a fibre-optic software company - for $1.2bn last week.

Broadcom has made 11 other all-stock acquisitions this year. Its market capitalisation jumped almost four per cent to over $50bn, on hearing the news.

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