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.
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