News & Information for Technology Purchasers NewsFactor Sites:     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Let an ISACA® certification
elevate your career.

Register today and save
Mobile Tech
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Broadcom To Acquire NetLogic for $3.7 Billion

Broadcom To Acquire NetLogic for $3.7 Billion
By Jennifer LeClaire

Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

A key opportunity for the merger of Broadcom and NetLogic lies in the tablet and smartphone market. These mobile devices use conventional service-provider networks, and questions are arising about the impact the proliferation of these devices will have on cell networks. Broadcom and NetLogic will be well positioned to supply new technology.

In one of the largest technology acquisitions of 2011, Broadcom has scooped up NetLogic Microsystems for $3.7 billion. The price equals $50 per share.

NetLogic makes intelligent semiconductor solutions for next-generation networks, which Broadcom covets as a means to extend its infrastructure portfolio with new product lines and technologies.

Broadcom specifically pointed to NetLogic's knowledge-based processors, multicore embedded processors, and digital front-end processors as attractive aspects of the deal.

"This transaction delivers on all fronts for Broadcom's shareholders -- strategic fit, leading-edge technology and significant financial upside," said Scott McGregor, Broadcom's president and CEO. "Broadcom is now better positioned to meet growing customer demand for integrated, end-to-end communications and processing platforms for network infrastructure."

Mobile Devices Open the Door

A key opportunity for the merged company lies in the tablet and smartphone market. These mobile devices are equipped to use conventional service-provider networks, and questions are arising about the impact the proliferation of these devices will have on cell networks.

"We saw this issue to a limited degree in the problems that AT&T had when the iPhone first became available. You saw certain AT&T networks, particularly in New York and San Francisco, getting swamped with the demand," said Charles King, principal analyst at Pund-IT.

"Clearly, vendors want to avoid that kind of problem in the future. That's going to open up some new opportunities for innovative, next-generation technologies, and the key to those types of technologies is microprocessors that NetLogic and other vendors have been developing."

As King sees it, Broadcom's purchase of NetLogic demonstrates that the company sees the challenges inherent in the next generation of wireless devices and believes this $3.7 billion investment will create substantial market opportunities.

Broadcom's Growth Strategy

McGregor said the transaction is consistent with Broadcom's strategic portfolio-review process and with its focus on value creation through disciplined capital allocation, while delivering strong solutions for clients.

The boards of both companies approved the deal, and the transaction is expected to close in the first half of 2012. Broadcom expects its investment to pay quick dividends. The company predicted earnings per share to rise about 10 cents in 2012.

Ron Jankov, NetLogic Microsystems President and CEO, called the merger a strong win for customers, for shareholders and for NetLogic Microsystems employees. NetLogic's product portfolio will benefit by blending with Broadcom's technologies, tools, resources and ecosystem, he said, and the companies expect the integration to run smoothly from a personnel standpoint.

"Our employees will benefit from the strong cultural alignment with Broadcom," Jankov said, "and from joining forces with an equally aggressive and energetic organization with the same relentless focus on engineering excellence and innovation."

Tell Us What You Think



Posted: 2011-09-20 @ 9:39am PT
no!!!!!!!!!!!!!!!!!!!!!! is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.

 Mobile Tech
1.   Screen Troubles Briefly Slow iPhone 6
2.   Bounty Offered for Oculus Rift Bugs
3.   Glass Adds Voice Access to Contacts
4.   Samsung, B&N Partner on Nook Tablet
5.   Acer Desktop Box Rides Chrome Wave

HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:

Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.

NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.