Done deal: Avago is buying Broadcom for $37 billion


Fortune

Well, it’s official: Avago Technologies [fortune-stock symbol=”AVGO”] is buying rival chipmaker Broadcom [fortune-stock symbol=”BRCM”] in a cash-and-stock deal worth a whopping $37 billion. Avago is paying $17 billion in cash and the rest in stock, according to a statement. News of the deal first leaked yesterday.

The acquisition, expected to close in the first quarter of 2016, values Broadcom at $54.50 per share in cash — well higher than Broadcom’s $47.06 per share closing price on Tuesday, but below Wednesday’s media-fueled closing price of $57.16.

Broadcom makes radios for cellphones and other consumer devices, plus chips used in networking equipment for the data center. Both of its businesses could compliment Avago’s more industrial and component-level activities. Avago makes analog and mixed-signal chips for automotive, industrial and communications applications. It also makes custom chips known as ASICS that are used in networking.

Avago was created ten years ago when…

View original post 58 more words

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s