Broadcom and NetLogic Microsystems have entered into a definitive merger agreement, under which NetLogic shareholders will receive US$50 per share in a transaction of approximately US$3.7 billion, net of cash assumed, according to the companies.
The transaction has been approved by the Broadcom and NetLogic Microsystems boards of directors and is subject to customary closing conditions. Both parties expect the transaction to close in the first half of 2012.
Broadcom said the acquisition will extend its infrastructure portfolio with a number of new product lines and technologies, including knowledge-based processors, multi-core embedded processors and digital front-end processors. The combination enables Broadcom to deliver seamlessly-integrated network infrastructure platforms to its customers, reducing both their time-to-market and development costs.
Broadcom currently expects the acquisition to be accretive to EPS by approximately US$0.10 on a non-GAAP basis in 2012.
"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," said Scott McGregor, Broadcom president and CEO. "Broadcom is now better positioned to meet growing customer demand for integrated, end-to-end communications and processing platforms for network infrastructure."
Article translated by Jessie Shen
