updated 11:45 am EDT, Mon September 12, 2011
Heats up competition in communications segment
Broadcom Corporation announced that it will acquire NetLogic Microsystems, Inc, subject to regulatory approval and NetLogic stockholders. The boards of directors of both companies have approved the deal. The acquisition gives Broadcom added depth, which it intends to use to provide integrated solutions for the networking, mobile computing and smartphone segments of the communications industry.
Broadcom and NetLogic Microsystems held a webcast with analysts and investors to discuss the proposed acquisition at 5:00am Pacific Time. The webcast was recorded and will be available at the investors section of the Broadcom website until 10:00pm Pacific Time on October 12 2011.
The companies agreed to a price of $50 per share of NetLogic stock. The buyout is worth approximately $3.7 billion. The sale should close in the first half of 2012.