Broadcom on Monday said it will acquire NetLogic Microsystems in a $3.7 billion deal to bolster its processor line-up.
NetLogic, which sold out for $50 a share, makes multi-core embedded processors and so-called "knowledge-based" chips. With the move Broadcom plans to expand its next-gen networking chips.
According to a statement, the deal is expected to close in the first half of 2012. Broadcom said NetLogic will boost non-GAAP earnings by 10 cents a share in 2012.
Meanwhile, Broadcom reiterated its outlook for the third quarter. Broadcom expects revenue between $1.9 billion to $2 billion.
Broadcom's combo Bluetooth/Wi-Fi combo chip is used in Apple's iPhone and iPad as well as Samsung Galaxy S II. The company is looking to NetLogic to provide it with a full suite of processors in the network. NetLogic makes low power embedded processors and chips for content processing and classification.