Avago buys Broadcom for $37 billion

Posted on Thursday, May 28 2015 @ 15:09 CEST by Thomas De Maesschalck
Broadcom logo
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.
Source: ZD Net


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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