LONDON Fabless chip company NetLogic Microsystems Inc. (Mountain View, Calif.) has agreed to buy RMI Corp. (Cupertino, Calif.), a vendor of multicore networking processors, for $175.4 million in stock and $8.0 million in cash. An additional $6.5 million would be paid if certain businessobjectives are reached, NetLogic said.
NetLogic said RMI's customer base includes Alcatel-Lucent, Aruba Networks, Check Point Technologies, Cisco Systems, Datang Mobile, Dell, Fujitsu, H3C Technologies, Hewlett-Packard, Huawei Technologies, Huawei-Symantec Technologies, IBM, Juniper Networks, LG, McAfee, Motorola, NEC, Samsung, Sun Microsystems and ZTE.
NetLogic's portfolio includes knowledge-based processors, content processors, network search engines and 10-100 Gigabit Ethernet PHY products.
"Similar to the growth drivers that are opening up new opportunities for our knowledge-based processors and high performance physical layer products, the rapid growth in converged IP traffic and demand for the support of advanced IP services such as video, 3G/4G, voice-over-IP and enhanced security, are opening up new opportunities for high-performance multicore, multithreaded processors," said Ron Jankov, president and CEO of NetLogic, in a statement.
"RMI was founded on the vision to build a premier processor company that develops innovative products to power next-generation networking and communications equipment," said Atiq Raza, founder and former chairman and CEO of RMI, in the same statement. "This is the result of many years of hard work by RMI employees, and I believe the merger with NetLogic Microsystems is an exciting event with significant potential."
The transaction remains subject to closing conditions, including the approval by the stockholders of NetLogic of the issuance of the shares of common stock for use in the transaction and required regulatory filings and reviews. NetLogic expects the transaction to close by the end of the third quarter of 2009.
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