Broadcom Corp. is buying NetLogic Microsystems, a semiconductor solutions provider for next-gen networks. The merger agreement gives NetLogic shareholders $50 per share in a transaction of approximately $3.7 billion.
"This transaction delivers on all fronts for Broadcom's shareholders -- strategic fit, leading-edge technology and significant financial upside," said Scott McGregor, Broadcom's president and CEO. "With NetLogic Microsystems, Broadcom is acquiring a leading multi-core embedded processor solution, market leading knowledge-based processors, and unique digital front-end technology for wireless base stations that are key enablers for the next generation infrastructure build-out. Broadcom is now better positioned to meet growing customer demand for integrated, end-to-end communications and processing platforms for network infrastructure."
The boards of both companies have approved the deal, but it remains subject to customary closing conditions. Broadcom expects the close to happen in the first half of 2012.
