Avago buys Broadcom
 

Executives from Qualcomm might be found shivering in the loos after it was announced that Avago Technologies has bought Broadcom for a cool $37 billion.

The deal is the largest merger of chipmakers ever and turned a minor company run by a ferocious dealmaker into one of the biggest industry players. It should also put the fear of God into its large rival Qualcomm.

Avago works the wireless and industrial markets and it is offering Broadcom shareholders $17 billion in cash and Avago shares valued at $20 billion. Broadcom makes connectivity chips, which are used widely in smartphones made by Apple and Samsung.

The deal is the biggest so far by Avago Chief Executive Hock Tan, who has developed a small chipmaker into a $36 billion company through acquisitions since taking the over nine years ago.

The combined company is going to be based in Singapore and known as Broadcom and will be the third-largest U.S. semiconductor maker by revenue, behind Intel and Qualcomm.

http://www.techeye.net/business/avago-buys-broadcom