Irvine-based semiconductor manufacturer Broadcom on Friday announced that it has acquired NetLogic Microsystems Inc. for $3.7 billion. Headquartered in Santa Clara, NetLogic produces semiconductors that are designed specifically for Internet and networking purposes.
The acquisition will result in a broader range of semiconductors produced by Broadcom, with the faster time-to-market development costs found in the much larger corporation, say company reps.
“The NetLogic acquisition is a significant milestone in Broadcom’s strategy to extend its communications infrastructure leadership and take advantage of the explosive growth in mobile and video traffic and the rise of cloud computing,” said Scott McGregor, Broadcom president and CEO. “This acquisition adds a high-margin, high-growth business that strongly increases the addressable market of our infrastructure and networking business.”
Former president and CEO of NetLogic Microsystems, Ron Jankov, will join the team at Broadcom Corp.’s as the new senior vice president and general manager. The 700-plus employees at NetLogic will be moved to Broadcom.
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