Avago buys LSI for $6.6bn
Avago Technologies has bought LSI for $6.6 billion. According to Avago, the deal will creates a diversified semiconductor company with annual revenues of around $5bn. The move is also said to add enterprise storage to Avago's wired infrastructure, wireless and industrial businesses, allowing the new organisation to take advantage of the opportunities presented by the increase in data centre IP and mobile data traffic.
"This highly complementary and compelling acquisition positions Avago as a leader in the enterprise storage market and expands our offerings and capabilities in wired infrastructure, particularly system level expertise," said Hock Tan, pictured, Avago's president and ceo.
Avago expects the LSI acquisition to be a positive contributor to its cash flow.
Alongside a $4.6bn loan from a group of banks, the deal is also being financed through a $1bn investment by Silver Lake Partners, which was part of the consortium which acquired NXP from Philips.
