Broadcom acquires NetLogic for $3.7 billion

Broadcom will pay $50 per share for each NetLogic share, a premium of 57 per cent over NetLogic’s Friday close of $31.91 on Nasdaq.

Broadcom expects the deal to add 10 cents a share to its earnings on an adjusted basis in 2012.

The companies said the transaction has been approved by their respective boards and it is expected to close in the first half of 2012.

Broadcom reiterated that it expects third-quarter revenue around the middle of the previously given range of $1.9 billion to 2 billion with product gross margins flat to slightly higher.

Broadcom expects to have around $4.2 billion in cash on hand by the end of third quarter up from around $3.8 billion at the end of the second quarter.