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Broadcom buys NetLogic for $3.7 billion

Chip company Broadcom said it will buy NetLogic Microsystems in a deal worth $3.7 billion, at a premium price $50 per share.

Broadcom reckons NetLogic's product portfolio has a number of "critical" new product lines and technologies, including knowledge-based processors, multi-core embedded processors, and digital front-end processors, which it will intgegrate into it network platforms.

Scott McGregor, Broadcom's president and CEO said Broadcom "is now better positioned to meet growing customer demand for integrated, end-to-end communications and processing platforms for network infrastructure."

Ron Jankov, NetLogic's president and CEO described the deal as "a strong win for customers, for shareholders and for NetLogic Microsystems employees."

He added: "Our employees will benefit from the strong cultural alignment with Broadcom, and from joining forces with an equally aggressive and energetic organization with the same relentless focus on engineering excellence and innovation."

The deal has been rubber-stamped by both Broadcom and NetLogic Microsystems' boards of directors and is expected to close in the first half of 2012, subject to customary closing conditions.