DEBT FINANCING. Broadcom NetLogic to buy for $ 3.7 billion

NEW YORK (Reuters)-Wireless chipmaker Broadcom Corp. agreed to buy NetLogic Microsystems Inc for about $ 3.7 billion to extend its range of chipmaking technology to more advanced networks.
Broadcom will pay $ 50 per share for each share of NetLogic, a premium of 57 percent over Friday's close of US $ 31.91 NetLogic on Nasdaq. NetLogic shares increased by 51% in pre-market trading on Monday.
Broadcom expects the deal to add 10 cents per share to its earnings on a basis set in 2012.
The companies said the transaction was approved by their respective boards and is expected to close the first half of 2012.
Broadcom reiterated that it expects third-quarter revenue around the middle of the predetermined range of $ 1.9 billion to 2 billion with gross product margins flat to slightly higher.
Broadcom expects to have approximately $ 4.2 billion in cash on hand until the end of the third quarter of $ 3.8 billion at the end of the second quarter.
The companies will conduct a conference call with analysts and investors on 8:0 am EDT on Monday.

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