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Broadcom To Buy SC Square

Chip maker Broadcom Corp. said Sunday it is buying SC Square Ltd., an Israel-based developer of security software, for $41.9 million in cash.

IRVINE, Calif. (AP) -- Chip maker Broadcom Corp. said Sunday it is buying SC Square Ltd., an Israel-based developer of security software, for $41.9 million in cash.

Broadcom said the deal fits with its strategy to acquire innovative technologies and it cited a particular interest in taking on the Israeli company's team of engineers.

The transaction is expected to close by June 30 and will reduce earnings by about 1 cent a share for the remainder of 2011, the company said.

SC's products include security-oriented ID cards, employee cards and e-banking for worldwide credit card companies and others. It is a subsidiary of Tel Aviv-based Nisko Projects & Communications Ltd., a high-tech company listed on Israel's stock exchange.

The announcement comes with Irvine-based Broadcom's stock down sharply since warning two weeks ago that its second-quarter revenue would be well below what analysts were expecting. Its stock closed Friday at $34.14, up 7 percent from a year ago but down 22 percent in 2011.

The company had $6.82 billion in revenue last year. It holds more than 5,100 U.S. and 2,200 foreign patents.
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