Avago Technologies Acquiring Broadcom For $37 Billion

Broadcom acquired by Avago Technology

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.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.