Avago Technologies and Broadcom announcing their deal state that Avago will own broadcom for $17 billion in cash and $20 billion Avago shares. Post acquisition, the combined company will be situated in avago’s home, Singapore and will continue to be addressed as Broadcom. The combined firm will have market value of $77 billion and revenue of $15 billion. The transaction closing is expected by the end of first quarter of 2016.
After the transaction completion, Hock Tan, president and Chief Executive Officer of Avago will continue to serve as the president and Chief Executive Officer of combined company. Dr Henry Samueli, co –founder, Chief Technical Officer and chairman of board of broadcom will take over as chief technology officer of combined company. Dr Henry T. Nicholas, co founder and past CEO of Broadcom will serve in a strategic advisory role within combined company.
Avago, a semiconductor company producing number of different products including PCle switches for motherboards. Avago’s product portfolio includes thousand of products in four primary target markets wireless communications, wired infrastructure, enterprise storages, and industrial and others. This will be of immense help from the users who want excel in it. This will help them in offering further quality services.
Broadcom provides semiconductor solutions for wire and wireless communications. It makes different chips for wifi and GNSS. The company also produces a number of chips used in networking equipments for data centers. The California based company’s customers include Apple, Hewlett Packard Motorola IBM, Dell, Linksys, Lenevo, Asus, Logitech, Nintendo, Nokia Siemens networks, Nortel(Avaya), Tenda, TiVo, and Cisco systems. It is going to add more names to its list very soon.
The deals is see as major step to compete with Intel and Qualcomm in the areas of wired and wireless networking. Its other important Intel investments included acquisition of Spanish startup Indisys and Mindspeed Technologies. In terms of Qualcomm, it acquired chipmaker CSR PLC in a $2.5 billion (Rs 15, 000 core) deal in October. With all these funding it will be making efforts to enhance their services and reach to the customers. They can avail high quality services and make the task simple and useful for you.