Broadcom agreed on Monday to buy NetLogic Microsystems, a maker of chips for wireless devices like routers, for about $3.7 billion in cash.þþUnder the terms of the deal, Broadcom will pay $50 a share, net of cash. The price represents a 57 percent premium to NetLogic’s closing on Friday.þþThrough the deal, Broadcom will acquire a maker of advanced chips, especially those used in equipment for high-speed cellphone data networks. NetLogic’s clients include Brocade Communications Systems, Cisco Systems and I.B.M.þþ“This transaction delivers on all fronts for Broadcom’s shareholders – strategic fit, leading-edge technology and significant financial upside,” Scott McGregor, Broadcom’s chief executive, said in a statement.þþBroadcom expects the deal to add to its earnings per share by 10 cents next year on a pro forma basis. The takeover is scheduled to close in the first half of next year.
Source: NY Times
