Avago Acquiring Broadcom for $37 Billion

According to Avango Technologies, they are ready to buy out Broadcom for a whopping $37 billion. That is a huge amount of money that you could probably buy anything you ever wanted with, and Bloomberg says it is the biggest tech deal to ever be made. Avango said that after the deal is done, the combined worth of the companies will be $77 billion.

The new company is going to be called Broadcom LTd, and it will be headed by Hock Tan, the CEO of Avango. Right behind companies like Intel, Samsung, TSMC, Qualcomm, and Micron, Broadcom would be the 6th largest semiconductor company in the world.

Many people don't really know about Avango, but they started out as a division of Hewlett-Packard before they split off into their own company years later. And everyone is pretty familiar with HP. Avango specializes in offering products for wireless communications, wired infrastructure, enterprise storage, and industrial applications. Broadcom is mainly known for their chips for communications devices and for their video solutions. They also make the chips for the popular Raspberry Pi computers.

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The chip industry has already been privy to big moves like this. Just a couple of months ago NXP announced that it was planning on acquiring Freescale for just under $17 billion. It's too soon to see how the chip industry will be affected or what's to come from this new acquisition but as soon as details drop you'll find them here on A Computer Blog.

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