Broadcom Announces $3.7 Billion Takeover of NetLogic Microsystems
Published on: 12th Sep 2011
Note -- this news article is more than a year old.
By: Ian Mansfield
Semiconductor vendor Broadcom has announced that it is paying USD3.7 billion to buy NetLogic Microsystems a supplier of semiconductors for next generation networks.
Broadcom said that the acquisition extends its infrastructure portfolio with a number of new product lines and technologies, including knowledge-based processors, multi-core embedded processors, and digital front-end processors.
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.
"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 also reiterated its business outlook for the third quarter of 2011. Broadcom expects revenue around the middle of the previously-guided range of $1.9 billion and $2.0 billion, GAAP product gross margins of flat to up slightly and GAAP research & development and selling, general and administrative expenses of flat to down $10 million in the third quarter of 2011. By the end of the third quarter, Broadcom also expects to have approximately $4.2 billion in cash and cash equivalents on hand, up from approximately $3.8 billion at the end of the second quarter.