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Avago to buy Broadcom for $37 billion

MARKETWATCH 7:29 AM ET 5/28/2015

Symbol Last Price Change
AVGO 141.49 0 (0%)
BRCM 57.155up 0 (0%)


QUOTES AS OF 04:00:00 PM ET 05/27/2015
By Dana Mattioli, Dana Cimilluca and Shayndi Raice

Deal marks latest acquisition in busy semiconductor space

Chip maker Avago Technologies Ltd.(AVGO) agreed to buy rival Broadcom Corp.(BRCM) for $37 billion in cash and stock, the latest in a wave of deals for the companies that supply parts to power smartphones, tablets and other gadgets.

Avago (AVGO) will pay $17 billion in cash and about $20 billion in its own shares based on Wednesday's close.

Avago (AVGO), the acquisitive former semiconductor unit of Hewlett-Packard Co. (HPQ), makes chips for wireless-communications and corporate-data-storage markets. Based in San Jose, Calif., and Singapore, it reported $4.3 billion in sales in the 12 months ended Nov. 2.

The combined company will have $15 billion in annual revenue.

Broadcom (BRCM) supplies the vast majority of chips used in the latest networking switches found in corporate data centers, a fast-growing business that could enhance Avago's(AVGO) communications-focused revenue stream.

An expanded version of this report (http://www.wsj.com/articles/avago-to-buy-broadcom-for-37-billion-1432811311/?mod= mktw)appears at WSJ.com.

-Dana Mattioli; 415-439-6400; [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires
05-28-150729ET
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