Mergers and Acquistions News
Categories: Telecoms
September 14th 2011, 15:18PM
Wireless chip company Broadcom has announced a $3.7 billion (£2.35 billion) takeover deal that will see it acquire rival company NetLogic.
Broadcom's ability to make wireless base system chips will be extended by the deal, which is the company's biggest yet.
In relation to NetLogic's closing value on Friday, the offer of $50 a share represents a 57 per cent premium.
Their shares had risen 50 per cent to $48 after midday trading in New York, whereas Broadcom's experienced a slight drop to under $33.
The Financial Times reports that analysts from BMO Capital Markets spoke favourably of the deal in a note.
"We like the deal and believe NetLogic will bolster Broadcom’s position in infrastructure, not to mention add to its strength at key customers, such as Cisco," it read.
Google recently acquired Motorola in a similar takeover, as the internet company plans to move into the wireless smartphone market. 
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