Broadcom plans to buy privately held chipmaker Dune Networks for $178 million in cash

Broadcom says it will pay $178M for Dune Networks

IRVINE, Calif. — Chipmaker Broadcom Corp. said Monday it will buy privately held Dune Networks for $178 million in cash.

Dune Networks supplies chips that are used in networking devices. Broadcom said the boards of the two companies have approved the deal. Broadcom said the sale is expected to close by the end of March 2010, and will be neutral to slightly positive to its profit in 2010.

In aftermarket trading, Broadcom shares fell 2 cents to $29.18.