NetLogic Buys IDT Assets

MOUNTAIN VIEW, Calif. -- NetLogic Microsystems, Inc. [NASDAQ: NETL], the leader in the design and development of knowledge-based processors and high-speed integrated circuits today announced that it has entered into a definitive agreement to acquire certain assets associated with Integrated Device Technology Inc.’s (IDT) network search engine products.

The acquisition includes IDT’s search accelerator, network search engine and route accelerator product families and related patents and intellectual property. These products and technologies will complement and further expand NetLogic Microsystems’ existing portfolio of knowledge-based processors, NETLite™ processors and network search engines, and will further strengthen the relationships with NetLogic Microsystems’ customer base.

Under the terms of the agreement, NetLogic Microsystems will pay IDT $90 million, plus the cost of inventory on hand on the closing date. At closing, NetLogic Microsystems, at its option, may pay the entire purchase price in cash or pay $60 million, plus the cost of inventory in cash and issue to IDT a $30 million secured promissory note payable in two equal installments on the first and second anniversaries of the closing date. The transaction has been approved by the board of directors of each company, and is subject to customary closing conditions, including required regulatory filings. The transaction is expected to close prior to the end of the third quarter of 2009.

NetLogic Inc.