Broadcom Corp. is acquiring NetLogic Microsystems Inc. for $3.7 billion in cash. See the full story on The Deal Pipeline (subscription required).
Morningstar Inc. analyst Brian Colello writes, "NetLogic's small-but-growing multicore processor business appears to be the crown jewel of the deal."
Linley Gwennap, principal analyst at Linley Group and editor-in-chief of the Microprocessor Report, said of NetLogic's recent announcement about a new processor: "The XLP II multi-core processor will deliver a sizeable leap in performance compared with today's popular XLP products. In an industry with an insatiable demand for greater performance, the XLP II's scalability to eight sockets should keep it at the forefront of performance. No competing processor vendor provides scalability to this level of performance."
Colello also thinks Broadcom may have overpaid (57% premium) for NetLogic but doesn't expect to make a material change to the fair value estimate for the chipmaker.
The deal provides a good base for 4G products but word on the street is 5G is on its way, slowly but surely. - Baz Hiralal
After NetLogic, who's next?