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  • Avago Announces its Acquisition of Apple Supplier Broadcom for $37 Billion

    The overall trend of consolidation in the semiconductor industry appears to be continuing as Avago will recently announced that it will be acquiring its rival, Broadcom, which has been a longtime supplier of communications chips to Apple. The acquisition will be a $37 billion cash-and-stock transaction that valued the combined company at a whopping $77 billion. Avago is said to pay $17 billion in cash, covering the balance with approximately 140 million Avago shares worth $20 billion. The Avago CEO, Hock Tan, will remain as the CEO of the new entity, which will now operate under the Broadcom brand.

    The co-founder of Broadcom, Dr. Henry Samueli, said the following in a release regarding the matter:

    When Henry Nicholas and I founded Broadcom, we had a vision of creating the world leader in communications semiconductors. Today's announcement is a continuation of that vision and we could not think of a better partner for the future than Avago.
    Dr. Samueli, who co-founded Broadcom with Dr. Henry Nicholas in 1991 will continue to maintain his current role as Chief Technical Officer. He added the following regarding the matter:

    The culture that Henry and I created when we founded Broadcom was demanding, execution-oriented, and certainly not guaranteed to mesh with the average technology company. It was, however, a culture that enabled Broadcom to grow exponentially and emerge as the market leader in every major market segment involving broadband communications.

    In Avago, we have found a culture and a management team that embody the best of the philosophies on which Broadcom was founded, together with a fast-paced, no-nonsense, process-driven business culture that we need to take our combined company to the next level.
    For those of you who didnít know, Broadcom is a major force in many aspects of wireless technology as a whole. The company has been a long-time supplier for Apple with communications chips for its wireless products including the iPhone. This puts Broadcom in an important position, one which sells millions of Apple-certified AirPlay and MFi chips each year, with the company thought to be competing with both Intel and Qualcomm as well as a potential in-house baseband team from Apple for the next-gen iPhone baseband orders.

    The recent Avago acquisition is expected to close by the end of March 2016 which is when the new entity will function as one.

    Source: The New York Times
    This article was originally published in forum thread: Avago Announces its Acquisition of Apple Supplier Broadcom for $37 Billion started by Akshay Masand View original post