NetLogic to Acquire RMI

NetLogic Microsystems announces definitive agreement to merge with RMI

June 1, 2009

3 Min Read

MOUNTAIN VIEW, Calif. and CUPERTINO, Calif. -- NetLogic Microsystems, Inc. [NASDAQ:NETL], a leader in the design and development of knowledge-based processors and high-speed integrated circuits, and RMI Corporation, a leading provider of high-performance and low-power multi-core, multi-threaded processors, today announced that they have entered into a definitive agreement to merge.

RMI’s portfolio of high-performance, low-power products includes the industry-leading families of XLP™, XLR® and XLS® Multi-Core, Multi-Threaded Processors for converged IP networks, which have been successfully designed into next-generation 3G/4G mobile wireless infrastructure systems, high-performance switches and routers, security appliances and storage appliances at Tier 1 OEMs worldwide. RMI’s high-performance Multi-Core, Multi-Threaded Processors offer best-in-class “data-in-flight” performance and power profile that enable the delivery of rich IP content and services, such as video, 3G/4G mobile services, voice-over-IP and enhanced security, over tomorrow’s wireline and wireless networks. The ever-increasing bandwidth and complexity of this traffic, coupled with the rapidly evolving technological requirements of these services, are expanding the market opportunities for RMI’s high-performance Multi-Core, Multi-Threaded Processors.

In addition, RMI offers a family of Ultra Low-Power Processors for high-volume enterprise, industrial and media-rich applications, where their unique blend of low power core, media architecture, and connectivity has created a highly differentiated value proposition. The rapid proliferation and growing market for these power-sensitive connected devices are fueling the demand for higher performance, mission-critical infrastructure equipment in core, edge, metro, access, enterprise, storage and SMB networks.

RMI’s superior technology and product portfolio has allowed the company to achieve an impressive list of strategic design wins at a wide range of Tier One customers such as Alcatel-Lucent, Aruba Networks, Check Point Technologies, Cisco Systems, Datang Mobile, Dell, Fujitsu, H3C Technologies, Hewlett-Packard, Huawei Technologies, Huawei-Symantec Technologies, IBM, Juniper Networks, LG, McAfee, Motorola, NEC, Samsung, Sun Microsystems and ZTE.

The merger with RMI Corporation is expected to enable NetLogic Microsystems to further expand into the high-performance “data-in-flight” processing segment. RMI’s cutting-edge XLP, XLR and XLS Multi-Core, Multi-Threaded Processors will complement NetLogic Microsystems’ existing portfolio of knowledge-based processors, content processors, network search engines and 10-100 Gigabit Ethernet PHY products. By expanding upon the IP and product portfolio, the merger is further expected to strengthen and expand NetLogic Microsystems’ Tier 1 OEM customer base as well as to diversify its end market penetration.

RMI’s first-class engineering team will continue to lead innovations in next-generation high-performance Multi-Core, Multi-Threaded Processors, and Ultra Low-Power Processors. Moreover, the combination of the two companies’ R&D centers of excellence in high-performance technology development brings together critical skill sets in high-speed circuit design, processor architectures, innovative low-power techniques in advanced manufacturing process nodes and software expertise that will enable NetLogic Microsystems to further raise the bar of innovation in the industry and continue to deliver best-in-class products and solutions.

“We are excited by the opportunities presented by this merger because of the remarkable synergies in our technologies, markets, customers, geographic locations and company cultures,” said Ron Jankov, president and CEO of NetLogic Microsystems. “Further, we believe that our two companies’ individual strengths can be successfully leveraged into tremendous growth potential for the combined entity. Similar to the growth drivers that are opening up new opportunities for our knowledge-based processors and high performance physical layer products, the rapid growth in converged IP traffic and demand for the support of advanced IP services such as video, 3G/4G, voice-over-IP and enhanced security, are opening up new opportunities for high-performance Multi-Core, Multi-Threaded Processors. RMI’s unique architectures enabling industry-leading performance, programmability and scalability, along with its migration to 40 nanometer advanced technology node make its solutions ideally suited for these emerging, complex networking and communications applications. We are very pleased to welcome the RMI team and are excited to work together to create new opportunities for growth in high-speed data plane and control plane processing.”

NetLogic Inc.

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