Chipmaker Broadcom Corp (BRCM.O) plans to purchase NetLogic Microsystems Inc (NETL.O) for about $3.7 billion to expand its lineup of chips used in wireless network equipment to take advantage of growing demand for mobile data services. The $50-per-share deal, which represents a premium of 57 percent over NetLogic's Friday close of $31.91 on the Nasdaq, sent NetLogic's shares soaring 50 percent on Monday. But Broadcom shares were down 2.5 percent at $32.60 as some investors questioned the steep premium. (For a Breaking Views column on the deal, see: ) Broadcom Chief Executive Scott McGregor defended the premium, noting that NetLogic would bring faster profit and revenue growth and that the addition of the products to Broadcom's lineup would double the size of the network equipment market it can go after to about $12 billion by 2015.
Broadcom Corporation (Broadcom) is a provider of semiconductor for wired and wireless communications. Shares of BRCM fell by 2.78% or $-0.93/share to $32.51. In the past year, the shares have traded as low as $30.71 and as high as $47.39. On average, 8544670 shares of BRCM exchange hands on a given day and today's volume is recorded at 7310936.
NetLogic Microsystems, Inc. is a semiconductor company that designs, develops and sells processors and high-speed integrated circuits that are used to enhance the performance, functionality and energy efficiency of advanced mobile wireless infrastructure, data center, enterprise, metro Ethernet, edge and core infrastructure networks. Shares of NETL traded higher by 50.39% or $16.08/share to $47.99. In the past year, the shares have traded as low as $22.95 and as high as $43.71. On average, 1502760 shares of NETL exchange hands on a given day and today's volume is recorded at 30149364.
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