Broadcom acquires NetLogic for $3.7 billion

Summary:NetLogic makes multi-core embedded processors and so-called "knowledge-based" chips. With the move Broadcom plans to expand its next-gen networking chips.

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.

Topics: Networking, Hardware, Processors

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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