Irvine-based chip maker Broadcom Inc. has acquired NetLogic for $3.7 billion. Broadcom's products are known for ending up in popular electronics including the Nintendo Wii, Google's Android phone and Apple's iPhone and iPad. The firm hopes the acquisition will strengthen its network infrastructure platforms for its customers. Under the agreement, NetLogic Microsystems shareholders will receive $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. “Broadcom is now better positioned to meet growing customer demand for integrated, end-to-end communications and processing platforms for network infrastructure.”
The Fortune 500 company currently offers voice, video, data and multimedia connectivity in the home, office and mobile environments. Broadcom says Netlogic will extend the company’s portfolio with a number of new product lines including a knowledge-based processor and a digital front-end processor.
“This is a strong win for customers, for shareholders and for NetLogic Microsystems employees,” said Ron Jankov, NetLogic Microsystems president and CEO. “Our industry-leading product portfolio will benefit from access to Broadcom’s broad set of leading-edge technologies…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.”
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