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Broadcom pays $3.7B for NetLogic

Posted: 14 Sep 2011 ?? ?Print Version ?Bookmark and Share

Keywords:broadband? multicore embedded processor? acquisition?

Broadcom Corp. has announced its intention to buy NetLogic Microsystems Inc. for $3.7 billion. The fabless semiconductor company is offering $50 per share to NetLogic's shareholders.

Broadcom is known for providing semiconductor solutions for wired and wireless communications, while NetLogic provides high performance intelligent semiconductor solutions for next generation networks. The acquisition will extend Broadcom's portfolio of knowledge-based and multicore embedded processors.

Broadcom CTO tackles NetLogic buy
According to Broadcom's CTO Henry Samueli, the company has been wanting to expand into the high-end embedded processor space and Broadcom believes that the acquisition of NetLogic will fill this hole in the company's portfolio. Read more of Henry Samueli's interview with EE Times.

The transaction has already been approved by Broadcom and NetLogic's boards of directors and is subject to customary closing conditions, including the receipt of domestic and foreign regulatory clearances and the approval of NetLogic's stockholders. The transaction is expected to close in 1H12.

"This transaction delivers on all fronts for Broadcom's shareholdersstrategic fit, leading-edge technology and significant financial upside," stated Scott McGregor, Broadcom's president and CEO.

"This is a strong win for customers, for shareholders and for NetLogic Microsystems employees," noted Ron Jankov, NetLogic's president and CEO.

Broadcom stated that by the end of 3Q11, it expects to have about $4.2 billion in cash and cash equivalents on hand, up from about $3.8 billion at the end Q2.

- Peter Clarke
??EE Times

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