Broadcom Buys NetLogic
Wireless chipmaker Broadcom has agreed to buy communications processor company NetLogic Microsystems. Price: $3.7 billion in cash, or about $50 per share — a 57 percent premium over NetLogic’s closing price on Friday.
The acquisition, which will more than double Broadcom’s addressable market in network infrastructure and extend its reach in the 4G chip space, is the company’s 47th since its founding in 1991. It’s also the fourth-largest acquisition of a U.S. chipmaker in the past five years.
“The premium is fair,” said Broadcom CEO Scott McGregor. “This acquisition expands our market into additional networking opportunities.”