LONDON – Communications chip company Broadcom is set to buy NetLogic Microsystems for $3.7 billion net of cash assumed. Under the agreement, shareholders of NetLogic Microsystems Inc. (Santa Clara, Calif.) will receive $50 per share.
Broadcom is a market leading fabless chip company with a foundation built on broadband communications. The acquisition extends Broadcom's portfolio in such areas as knowledge-based processors and multi-core embedded processors.
The transaction has been approved by the Broadcom (Irvine, Calif.) and NetLogic Microsystems boards of directors and is subject to customary closing conditions, including the receipt of domestic and foreign regulatory clearances and the approval of NetLogic Microsystems' stockholders. The transaction is expected to close in the first half of 2012.
"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, in a statement issued by NetLogic.
"This is a strong win for customers, for shareholders and for NetLogic Microsystems employees," said Ron Jankov, NetLogic Microsystems' president and CEO, in the same statement.
Broadcom said by the end of the third quarter of 2011 it expects to have approximately $4.2 billion in cash and cash equivalents on hand, up from approximately $3.8 billion at the end of the second quarter. Related links and articles:
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