Broadcom Buys Modem Software Firm

Broadcom Corp., the Irvine semiconductor powerhouse that has been on a buying spree, has agreed to acquire privately held AltoCom Inc., which makes software that acts as a computer modem, for about $170 million in stock. Broadcom said it will issue about 1.62 million shares of its Class B stock for AltoCom, a 17-person developer based in Mountain View, Calif. AltoCom’s software, called SoftModem, eliminates the need for computer modem chips in fax machines, personal computers and home-networking devices. The deal, which is expected to close in about a month, would expand the breadth of Broadcom’s home-networking technology. This would be the fifth acquisition for Broadcom since the start of the year. The company’s stock rose $6.63 on Nasdaq, closing at $111.50.