NetLogic has entered an agreement to acquire Optichron for $77 million. The company will also assume $22 million of restricted stock units for employees. In addition, NetLogic will pay Optichron shareholders more than $100 million in performance-based incentives. A total of about 30 employees will move over to NetLogic, including the company founder but excluding CEO Mike Ricci.

Optichron, based near Silicon Valley, develops the digital front end (DFE) components needed in wireless base stations. Competing against FPGAs, these devices have the potential to reduce system cost and power. Prior to its acquisition, the startup had several design wins at multiple OEMs. NetLogic currently sells its XLS processors into base stations for Layer 2-4 processing. The company can now sell DFE components alongside its XLS processors to the same customers. For wireless base stations, TI and Freescale provide network processors and DSPs, which NetLogic lacks. Although this acquisition allows NetLogic to expand its footprint in base stations, the company will need DSP technology to fully compete against Freescale and TI. —Jag

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