Menu
Avago is buying Broadcom for $37 Billion to create a networking chip giant

Avago is buying Broadcom for $37 Billion to create a networking chip giant

The combined company will develop chipsets for wired and wireless networks

Avago Technologies has agreed to buy Broadcom in a deal that will create a networking chip giant with a wide variety of products, including components for the burgeoning IoT sector.

It has offered US$37 billion for Broadcom, including $17 billion in cash and equity valued at approximately $20 billion, it said on Thursday. The combined company will offer products for wired and wireless networks.

Both companies' chips are found in wireline and wireless networks. Avago also makes chips for optical networks, while Broadcom's are used in connected home and car equipment and the Internet of Things. It recently announced support for Apple's HomeKit platform, and chipsets for 802.11ac networks.

The companies expect to close the deal by next April, subject to approval from their shareholders and regulators.

The acquisition is just the latest in a period of consolidations large and small for the chip industry: Intel is picking up some custom server chip technology with the acquisition of Altera, while NXP Semiconductors plans to buy Freescale Semiconductor to build a $40-billion company with strengths in automotive electronics and IoT.

Send news tips and comments to mikael_ricknas@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesbroadcomAvago TechnologiesMergers and acquisitions

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments