Communication

Avago to acquire Broadcom: really a wide and broad comm semiconductor co.

Avago to acquire Broadcom for approximate US$37 Billion ( $17 billion in cash and equity valued at approximately $20 billion). This acquisition creates a big communications semiconductor company covering from the fibre-optic high-speed communication semiconductor devices to IOT enabling Bluetooth wireless transceivers. There is no such semiconductor company at present in the world which can match this level of breadth and depth in communications semiconductor offerings of this combined business. Qualcomm and Marvell faces a stronger competition from this newly agreed acquisition. Except for the cellular communication related SoC IC products, from cloud communications to IOT communications there is hardly any key missing links in the combined business of Avago and Broadcom. The combined business is capable of designing SOC chips from servers to mobile devices including wearables and IOT systems. Broadcom also brings its set-top box capabilities to the combined business. The combined value of the company is pegged at $77 billion in enterprise value. Actually Avago is smaller company by revenue compared to Broadcom. Broadcom is already in the top-10 semiconductor vendor list, whereas Avago is estimated to be 12th largest semiconductor company. The total revenues of combined business is estimated at $15 billion making it somewhere a sixth or seventh largest semicond...
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