Broadcom shareholders approve acquisition by Avago Technologies
Avago Tech announced in May that it had entered into a definitive agreement to acquire Broadcom Corporation in a cash and stock transaction that values the combined company at $77 billion in enterprise value.
Upon completion of the acquisition, the combined company will have the most diversified communications platform in the semiconductor industry, with combined annual revenues of approximately $15 billion.
Under the terms of the definitive agreement, Avago will acquire Broadcom for $17 billion in cash consideration and the economic equivalent of approximately 140 million Avago ordinary shares, valued at $20 billion as of May 27, 2015, resulting in Broadcom shareholders owning approximately 32% of the combined company.
Based on Avago's closing share price as of May 27, 2015, the implied value of the total transaction consideration for Broadcom is $37 billion. ■