Broadcom to Acquire Chipmaker NetLogic

In an effort to bolster its standing in the semiconductor market, Broadcom recently revealed that it plans to acquire fellow chipmaker NetLogic Microsystems for $3.7 billion, or $50 per share.

In a press release, the California-based Broadcom asserted that the deal would put it in a better position to deliver "seamless end-to-end network infrastructure platform." NetLogic's portfolio includes a number of technologies that may prove complementary to Broadcom's product lines, such as knowledge-based and multi-core embedded processors.

Additionally, NetLogic's involvement in the 4G wireless networks market could be seen as a significant gain for a communications-focused chipmaker like Broadcom.

"With NetLogic Microsystems, Broadcom is acquiring a leading multi-core embedded processor solution, market leading knowledge-based processors and unique digital front-end technology for wireless base stations that are key enablers for the next generation infrastructure build-out," said Broadcom president and CEO Scott McGregor in a statement.

The deal is expected to close in the first half of 2012, Broadcom stated.

This acquisition is the latest in a string of major technology deals this year. Last month, Google revealed plans to acquire Motorola Mobility, and last spring, AT&T announced it would purchase T-Mobile for $39 billion. The latter deal, however, has since run into issues with the U.S. Justice Department.