Broadcom Corporation today announced that it has agreed to buy NetLogic Microsystems, a provider of network semiconductors, for $3.7 billion.

Broadcom says the acquisition significantly expands its infrastructure portfolio with new product lines and technologies, including knowledge-based processors, multi-core embedded processors and digital front-end processors.

The transaction has been approved by the Broadcom and NetLogic boards of directors and is subject to customary closing conditions, including the receipt of domestic and foreign regulatory clearances and the approval of NetLogic Microsystems’ stockholders.  The transaction is expected to close in the first half of 2012.

“This transaction delivers on all fronts for Broadcom’s shareholders – strategic fit, leading-edge technology and significant financial upside,” said Scott McGregor, Broadcom’s President and CEO, in statement.

Broadcom also reiterated its business outlook for the third quarter of 2011.  The company expects revenue around the middle of the previously guided range of $1.9 billion and $2.0 billion, GAAP product gross margins of flat to up slightly and GAAP research & development and selling, general and administrative expenses of flat to down $10 million in the third quarter of 2011.

By the end of the third quarter, Broadcom also expects to have approximately $4.2 billion in cash and cash equivalents on hand, up from approximately $3.8 billion at the end of the second quarter.