From CNET News.com: Another blockbuster acquisition has hit the tech industry. Semiconductor company Broadcom announced today that it has agreed to acquire NetLogic Microsystems for $50 per share, or about $3.7 billion. The $50 per share represents a nearly 57 percent premium on NetLogic's closing stock price on Friday of $31.91. NetLogic seems to be a reasonable acquisition for Broadcom. Both companies compete in the semiconductor market, but NetLogic is offering components in areas that Broadcom needs to bolster its own offerings, including knowledge-based processors and multi-core embedded processors. However, NetLogic hasn't been so successful over the last couple years. In 2009, the company lost $47 million on revenue of nearly $175 million. Last year, it posted a loss of $66 million on $382 million in revenue. So far this year, based on two reported quarters, it has lost about $29 million. Broadcom, on the other hand, generated $4.5 billion in revenue and a $65 million profit in 2009. Last year, it grew its profit to $1.08 billion on revenue of $6.8 billion. Broadcom and NetLogic have become the latest major acquisition in the industry. Earlier this year, AT&T announced an agreement to acquire T-Mobile USA from Deutsche Telekom for $39 billion. Just last month, Google announced plans to acquire Motorola Mobility for $12.5 billion. View: Article @ Source Site |
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