Another mega deal is happening in the tech industry as Avago announced they'll be acquiring Broadcom in a cash and stock deal valued at $37 billion. The newly formed enterprise conglomerate will be known as Broadcom Limited and is estimated to have annual sales of around $15 billion.
Avago president and CEO Hock E. Tan explains "the combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors."
Avago is a Singapore-based company with offices in San Jose, California, and is known for producing analog, digital, mixed signal and optoelectronics components. Irvine, Calif.-based Broadcom is one of the largest semiconductor makers in the world, touting high-profile customers such as Apple, Samsung and Amazon.
With differentiated portfolios, Broadcom could fill in some holes throughout Avago's product line, particularly when it comes to voice and video applications and connected sensors. The combined companies also gain bargaining power over customers and manufacturers, leading to a significant uptick in scale on both sides.