NetLogic Microsystems, a developer of semiconductor offerings for next-generation Internet networks, has agreed to acquire Optichron, a California-based privately-held, fabless semiconductor provider of 3G/4G LTE base station digital front-end (DFE) processors.

In connection with the acquisition, NetLogic Microsystems will pay the Optichron stockholders initial cash consideration of approximately $77m upon the closing of the transaction.

NetLogic Microsystems will assume approximately $22m of restricted stock units for employees of Optichron who join NetLogic Microsystems following the close of the acquisition.

In addition, NetLogic Microsystems will pay the Optichron stockholders an earn-out upon the attainment of performance milestones through 2012 for the acquired business.

The acquisition of Optichron is expected to expand and broaden NetLogic Microsystems’ footprint in 3G/4G LTE base stations.

Optichron’s DFE processors have been designed into next-generation base stations by multiple original equipment manufacturers (OEMs), and NetLogic Microsystems expects that the acquisition will accelerate Optichron’s technical leadership and product roadmaps in the advanced 40nm process node and beyond.

NetLogic Microsystems president and CEO Ron Jankov said We are very excited to welcome the Optichron team to the NetLogic Microsystems family. Optichron’s culture of strong engineering excellence having developed the industry’s most innovative, highly differentiated products creates a natural alignment with our organisation.