Broadcom Corporation and NetLogic Microsystems have announced they have entered into a definitive merger agreement.
Under the agreement, NetLogic Microsystems shareholders will receive $50 (€36.8) per share in a transaction of approximately $3.7 billion, net of cash assumed.
The acquisition extends Broadcom’s infrastructure portfolio with a number of new product lines and technologies, including knowledge-based processors, multi-core embedded processors and digital front-end processors, each of which offers industry-leading performance and capabilities.
The transaction has been approved by the Broadcom and NetLogic Microsystems boards of directors and is subject to customary closing conditions, including the receipt of domestic and foreign regulatory clearances and the approval of NetLogic Microsystems’ stockholders.
The transaction is expected to close in the first half of 2012. Broadcom currently expects the acquisition to be accretive to earnings per share by approximately $0.10 on a non-GAAP basis in 2012.
