Notable Mergers and Acquisitions of the Day 03/21: (BRCM) (HIG) (MU) (DO)/(HERO)

• Broadcom Corporation (Nasdaq: BRCM) signed a definitive agreement to acquire BroadLight, Inc., a Delaware corporation with an Israel-based subsidiary. BroadLight is a privately held provider of highly integrated networking and fiber access PON (Passive Optical Network) processors. With the addition of BroadLight, Broadcom expands its broadband access portfolio to support customer requirements for rolling out next-generation fiber networks worldwide.
  
  In connection with the acquisition, Broadcom currently expects to pay approximately $195 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of BroadLight.
  
  The purchase price will be paid in cash, minus a portion of such purchase price attributable to certain unvested employee stock options that will be paid in Broadcom restricted stock units.
  
  Additional consideration of up to $10 million in cash will be reserved for future payment to holders of BroadLight capital stock and other rights upon satisfaction of certain performance goals. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects the acquisition of BroadLight to be roughly neutral to earnings per share in 2012.
  
  The transaction is expected to close in Broadcom's Q212.
  
  
• The Hartford (NYSE: HIG) has decided to focus on its property and casualty, group benefits and mutual funds businesses, each of which has a competitive market position, strong capital generating ability and lower sensitivity to capital markets. This sharper focus positions The Hartford to deliver superior performance and greater shareholder value.
  
  As a result, the company is placing its Individual Annuity business into runoff and is pursuing sales or other strategic alternatives for Individual Life, Woodbury Financial Services and Retirement Plans. Today’s announcement is the result of management and the Board of Directors’ rigorous evaluation of the company’s strategy and business portfolio conducted over the past several quarters and concluded this week.
  
  The company will stop new annuity sales effective April 27 and expects to take a related after-tax charge of $15 million to $20 million in the second quarter of 2012. This action is also expected to reduce annual run-rate operating expenses by approximately $100 million, pre-tax, beginning in 2013.
  
  Starting in the second quarter of 2012, financial results for the Individual Annuity segment, which consists of U.S. variable, fixed and fixed indexed annuities, will be reported in Life Other Operations. As part of the runoff strategy, The Hartford will continue to pursue actions to reduce the risks associated with the legacy annuity blocks, and to improve capital efficiency.
  
  The company is also pursuing sales or other strategic alternatives for Individual Life, Woodbury Financial Services and Retirement Plans. The Hartford has engaged financial advisors to assist in this process. During this period, the company will continue to write new business. Proceeds from any transactions will give The Hartford additional financial flexibility, providing opportunities to deleverage, derisk the legacy annuity blocks, invest in the business and potentially take other capital management actions.
  
  
• After the market closed Tuesday, Diamond Offshore Drilling, Inc. (NYSE: DO) executed a definitive agreement to sell its subsidiary’s jack-up drilling rig, Ocean Columbia, to a subsidiary of Hercules Offshore, Inc. (Nasdaq: HERO) for a sale price of $40 million in cash. The transaction is expected to close in May 2012, subject to customary closing conditions.
  
  After the transaction closes, employees currently working on the rig will have opportunities to remain with Diamond Offshore, where they may be reassigned within the fleet. Additionally, our current newbuild projects, three ultra-deepwater drillships and a deepwater semisubmersible rig, will create significant employment opportunities as the rigs are delivered from the shipyards in 2013 and 2014.
  
  
• Micron (NYSE: MU) has submitted a $1.5 billion bid to buy bankrupt DRAM rival Elpida, according to reports from Digitimes.

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