Avago Technologies is acquiring Broadcom for $37 billion. The two companies confirmed on Thursday morning that they are in the advanced stages of forming a deal.
Avago will acquire Broadcom with $17 billion in cash and $20 billion of its own shares.
“Today’s announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago’s heritage of technology from HP, AT&T, and LSI Logic, in a landmark transaction for the semiconductor industry,” Avago CEO Hock Tan said in the statement.
“The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors,” Tan said.
Broadcom shares jumped 21% on Wednesday after initial reports of a deal; Avago shares were up 6%. and shares rose 3% in aftermarket trading, while Broadcom shares fell by nearly 1%.
Broadcom’s clients include Samsung, Apple, and Amazon.
Avago is based in California and Singapore. This is the third acquisition for Avago in the last 3 months.