Broadcom to Buy NetLogic for $3.7 Billion (BRCM)

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Wireless chipmaker Broadcom Corporation ( BRCM ) on Monday announced it has entered into an agreement to buy semiconductor maker NetLogic Microsystems Inc ( NETL ) for about $3.7 billion in cash.

The $50 per-share offer represents a healthy 57% premium over NETL's Friday closing price of $31.91.

Both companies intimated they expect the deal to close in the first quarter of 2012. Broadcom said the acquisition will add around 10 cents per share to its earnings next year.

Broadcom shares fell 44 cents, or -1.3%, in premarket trading Monday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.08% dividend yield, based on Friday's closing stock price of $33.44. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: BRCM

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