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Broadcom shareholders approve acquisition by Avago Technologies

Staff writer |
Broadcom Corporation announced that at a special meeting of Broadcom shareholders held today, its shareholders approved all proposals necessary for its acquisition by Avago Technologies Limited.

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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.

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