Semiconductor maker Broadcom is to acquire wired and wireless communications chip maker NetLogic Microsystems for US$3.5bn in cash for shares.
The move will enable Broadcom to deliver seamless network infrastructure technology quicker and cheaper.
The transaction, which has been approved by the boards of both companies, will close in the first half of 2012.
NetLogic shareholder will receive US$50 per share.
“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.
“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.
“Broadcom is now better positioned to meet growing customer demand for integrated, end-to-end communications and processing platforms for network infrastructure,” McGregor said.
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