NetLogic Microsystems Inc. (NETL) welcomes Broadcom offer, shares spike

NetLogic Microsystems Inc. (Nasdaq: NETL) shares surged 51.5% to $48.33 Monday after Broadcom Corp. (Nasdaq: BRCM) said it would acquire the semiconductor company for about $3.7 billion. Share volume for NetLogic topped 43.4 million, whereas it would normally buy and sell 1.5 million shares on an average day.

A news release dated Sept. 12 noted that under the agreement, NetLogic Microsystems shareholders will receive $50 per share in a transaction of approximately $3.7 billion, net of cash assumed. The two companies are based respectively out of Santa Clara and Irvine, California.

The acquisition meaningfully extends Broadcom’s infrastructure portfolio with a number of critical 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 combination enables Broadcom to deliver best-in-class, seamlessly-integrated network infrastructure platforms to its customers, reducing both their time-to-market and their development costs.

The release quotes NetLogic CEO Ron Jankov as saying, “This is a strong win for customers, for shareholders and for NetLogic Microsystems employees.

“Our industry-leading product portfolio will benefit from access to Broadcom’s broad set of leading-edge technologies, tools, resources and eco-system, which will enable the combined company to offer a complete and integrated platform for our customers’ next generation designs. Our employees will benefit from the strong cultural alignment with Broadcom, and from joining forces with an equally aggressive and energetic organization with the same relentless focus on engineering excellence and innovation.”

NetLogic Microsystems is a worldwide leader in high-performance intelligent semiconductor solutions that are powering next-generation Internet networks.

Tags: BRCM, nasdaq, NETL, semiconductors, technology, Technology Stocks

This entry was posted on Monday, September 12th, 2011 at 3:46 pm by Glenn and is filed under Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.