Broadcom Corp, a semiconductor manufacturer based in Irvine, will be acquired by Avago Technologies Inc. of Singapore for $37 billion, the two companies announced Thursday.
“Upon completion of the acquisition, the combined company will have the most diversified communications platform in the semiconductor industry, with combined annual revenues of approximately $15 billion,” said a statement released in Irvine and Singapore.
Avago President and Chief Executive Officer Hock Tan said that “the combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors.” Broadcom President and Chief Executive Officer Scott McGregor added that “this transaction benefits all of Broadcom’s key stakeholders.”
Tan will serve as president and chief executive officer of the combined company, which will adopt the name Broadcom Limited. Henry Samueli, Broadcom’s co-founder, chief technical officer and chairman of the board, will join the board of the combined company and be appointed its chief technology officer, the statement said.
The definitive agreement announced this morning provides for Avago to acquire Broadcom for $17 billion in cash and the equivalent of approximately 140 million Avago ordinary shares that were valued at $20 billion as of Wednesday. This, said the statement, will result in Broadcom shareholders owning approximately 32 percent of the combined company.
— City News Service