Broadcom this morning announced that it has agreed to acquire NetLogic Microsystems, which delivers a range of semiconductor solutions. Under the agreement, NetLogic shareholders will receive $50 per share in a transaction of approximately $3.7 billion, net of cash assumed.

Netlogic’s share price closed at $31.91 last Friday.

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

NetLogic Microsystems is headquartered in Santa Clara, California, and has offices and design centers throughout North America, Asia and Europe.

The transaction has been approved by the Broadcom and NetLogic Microsystems boards and is subject to customary closing conditions. The transaction is expected to close in the first half of 2012.

Netlogic shares are up nearly 20 percent prior to market open. (Update: up 50 percent now)

Broadcom said it expects the deal to add 10 cents a share to non-GAAP earnings in 2012. The company today also reiterated its business outlook for Q3 2011 – the company expects revenue to come in at between $1.9 billion and $2 billion.

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