Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Broadcom acquires networking chip maker NetLogic

By Ritika Sharma Subscribe to RSS | December 20th 2011 | Views:
loading
 
  



Wireless chipmaker Broadcom Corp. announced Monday that it is buying smart chip maker NetLogic Microsystems in a bid that would enhance its range of chipmaking technology for more advanced networks.

Broadcom has agreed to pay $3.7 billion for Santa Clara, Calif.-based NetLogic, after both companies’ boards of directors approved the transaction, which is expected to close in the first half of 2012.

Reportedly, the Irvine chipmaker is paying $50 a share, which is roughly 57 percent more than NetLogic's Friday closing.

Acquisition will double Broadcom’s market share:- Broadcom said the acquisition would double its market share in the surging business of making online connections faster for mobile devices.

"This deal really expands our footprint on the infrastructure and networking side of the house," Henry Samueli, Broadcom co-founder and chief technology officer, told PCMag.

Reportedly, the Irvine chipmaker is paying $50 a share, which is roughly 57 percent more than NetLogic's Friday closing.

Why buy NetLogic:- Although both companies make chips, Broadcom CEO Scott McGregor said NetLogic's chips handle different networking functions than Broadcom's chips, and that’s why the company is worth buying.

NetLogic makes high-performance processors which can do everything from spotting computer viruses to accelerating complex network traffic more efficiently.

The semiconductor company’s brainier chips come equipped with routers, switches, datacenter servers, and network storage equipment.

Wireless chipmaker Broadcom Corp. builds fixed wire processors for home-based consumer products, such as DVD players, digital television sets, and smartphones, as well as some relatively low-level chips used in networking equipment. According to the report, "The Irvine chipmaker is paying $50 a share, which is roughly 57 percent more than NetLogic's Friday closing."

"They are very complementary products and by bringing them under one roof we can bring more value to the customers," McGregor said. "NetLogic has some really great technology that is a great strategic fit with Broadcom.”

Echoing McGregor's optimism, Ron Jankov, the NetLogic president and CEO, who will be staying on with the merger said: "This is a strong win for customers, for shareholders and for NetLogic Microsystems employees. Broadcom has agreed to pay $3.7 billion for Santa Clara, Calif.-based NetLogic, after both companies’ boards of directors approved the transaction, which is expected to close in the first half of 2012. It builds fixed wire processors for home-based consumer products, such as DVD players, digital television sets, and smartphones, as well as some relatively low-level chips used in networking equipment. NetLogic makes high-performance processors which can do everything from spotting computer viruses to accelerating complex network traffic more efficiently.

The semiconductor company’s brainier chips come equipped with routers, switches. "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."

The acquisition of NetLogic is Broadcom's largest in its 20-year history.

Ritika Sharma - About Author:
Here you can get the latest updates about Finance news. Get more details about Finance and investment news .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/networking-articles/broadcom-acquires-networking-chip-maker-netlogic.htm

Related Networking Articles Subscribe to RSS

The advantages of online news
Published by Nidhigupta on June 11th 2012 | Business
People in today's world, lead a very busy life. They are all the time over loaded and occupied with ...
 
The world is inching closer thanks to the world news
Published by Nidhigupta on July 6th 2012 | Business
World news refers to the news which is international. It deals with the subjects and issues at an in...
 
Stay informed about India news
Published by Nidhigupta on May 17th 2012 | Business
There are many leading and supporting web portals of news channels in Hindi online. There are many m...
 
Hot off the fire latest India news
Published by Nidhigupta on June 14th 2012 | Business
In India, people nowadays are very keen on knowing what is happening across their country. Every Ind...
 
The benefits of world news
Published by Nidhigupta on June 18th 2012 | Business
The world is coming closer and closer day by day thanks to the latest innovations in science and tec...
 
The country has come together with the state news of India
Published by Nidhigupta on July 11th 2012 | Business
We all understand that it is essential to have proper news not just about the country as a whole but...
 
Some advantages of the fulfilment houses and the stock management companies
Published by Diego Hall on January 9th 2012 | Business
A business can only be successful enough when it is dealt professionally in terms of stock managemen...
 
The variety of advancements today news has made.
Published by Nidhigupta on June 1st 2012 | Business
Today news has taken a completely new form and is presented to us in a very advanced and different w...
 
The latest news that reflect poor conditions of mother earth
Published by Nidhigupta on July 19th 2012 | Business
However, the breaking news is not just limited to these natural calamities. Human still undertake m...
 
The importance of UP news
Published by Nidhigupta on June 13th 2012 | Business
Uttar Pradesh rather UP is located in the northern part of India. It is the most populated state of ...
 
Online car magazines That’s right get iauto for all the latest in automotive news
Published by James Blee on August 25th 2012 | Business
To find out more about one of the best online car magazines that South Africa has to offer, visit ia...
 
The importance of online news
Published by Nidhigupta on June 27th 2012 | Business
News keeps us updated with the most recent events and happenings of the nation. Today news has emerg...
 
Get updated with latest India news
Published by Nidhigupta on July 18th 2012 | Business
India breaking news can also be viewed from abroad where many Indian live or pay a trip to. They can...
 
With Stock Daily Quotes Tracker, daily stock quotes is at your fingertips
Published by William Jackson on July 31st 2012 | Business
The latest software in stock market that has been released is Stock Daily Quotes Tracker which async...
 
Download the intraday stock data with Stock Intraday Quotes Download (SIQD)
Published by William Jackson on July 27th 2012 | Business
SIQD is used for downloading intraday stock data with the support of data format like MetaStock....
 
Connect to world with international news
Published by Nidhigupta on May 25th 2012 | Business
It is crucial for everyone in order to depend on day to use global news. We are able to acquire a gr...
 
Hot off the fire world breaking news
Published by Nidhu Gupta on June 16th 2012 | Business
It is very important for us to be aware of the happenings and events of the world. This can only be ...
 
KlikBang Money- the news source!
Published by Jamessms on March 15th 2012 | Business
Wish you had an amazing source of information that could keep you informed about possibly just anyth...
 
Trading precious metal… similar to trade as in stock exchange
Published by Trademetals on June 25th 2012 | Business
Trading precious metals is more than just investing money to buy gold. Talking about the economy inv...
 
Get the neoteric global news now online
Published by Nidhigupta on June 27th 2012 | Business
Global news is featured on the internet. There are plenty of sufficient numbers of news websites and...