Broadcom buys NetLogic for $3.7bn |
| Financial Times - Sep 12, 2011 |
Broadcom, the US wireless chip company, announced a $3.7bn cash deal to buy rival NetLogic Microsystems, the latest in a wave of consolidation linked to the growing number and importance of mobile devices.
The deal will extend Broadcom’s ability to make chips used in wireless base stations as operators build next-generation networks. It is the fourth-largest US technology deal this year, according to Capital IQ data.
The $50 per share offer represents a 57 per cent premium to Nasdaq-listed NetLogic’s close on Friday. NetLogic shares rose 50 per cent to $48 in midday trading on Monday in New York, while Broadcom’s fell 2.5 per cent to $32.60.
Development costs of mobile device chips are driving more consolidation in the industry. Earlier this year, Nvidia, the US chip company, acquired UK rival Icera for $367m in order to bolster its ability to make chips for mobiles and tablets.
Read Full Article from Financial Times
- Posted: 2011-09-12 13:53:39
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