Avago to acquire Emulex for $606 million
Avago Technologies has agreed to acquire networking company Emulex for approximately $606 million.
Under the terms of the agreement, the Singapore-based chip-maker will acquire Emulex for $8 per share in cash. The company plans to fund the transaction with cash available on its balance sheet.
"Emulex's connectivity business fits very well with Avago's existing portfolio serving the enterprise storage end market," said Hock Tan, president and CEO of Avago.
Senior members of Emulex’s management team and all of its directors, which collectively own approximately 2.5% of its outstanding shares, have said they will support the bid.
The acquisition is expected to be completed in the second half of Avago’s fiscal year ending November 1, 2015.
Last year, Avago completed its $6.6 billion acquisition of LSI, a semi-conductor company which specialises in chips used in networking and data storage hardware.