EE版 - Avago Tech (AVGO) to Acquire LSI Corp (LSI) in $6.6B Deal |
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S******s
发帖数: 5376 | 1 Avago Technologies Limited (Nasdaq: AVGO) and LSI Corporation (Nasdaq: LSI)
today announced that they have entered into a definitive agreement under
which Avago will acquire LSI for $11.15 per share in an all-cash transaction
valued at $6.6 billion. The acquisition creates a highly diversified
semiconductor market leader with approximately $5 billion in annual revenues
by adding enterprise storage to Avago's existing wired infrastructure,
wireless and industrial businesses. The combined company will be strongly
positioned to capitalize on the growing opportunities created by the rapid
increases in data center IP and mobile data traffic.
"This highly complementary and compelling acquisition positions Avago as a
leader in the enterprise storage market and expands our offerings and
capabilities in wired infrastructure, particularly system-level expertise,"
stated Hock Tan, President and Chief Executive Officer of Avago. "This
combination will increase the Company's scale and diversify our revenue and
customer base. In addition to these powerful strategic benefits, as we
integrate LSI onto the Avago platform, we expect to drive LSI's operating
margins toward Avago's current levels, creating significant additional value
for stockholders."
"This transaction provides immediate value to our stockholders, and offers
new growth opportunitiesfor our employees to develop a wider range of
leading-edge solutions for customers," said Abhi Talwalkar, President and
Chief Executive Officer of LSI. "Our leadership positions in enterprise
storage and networking, in combination with Avago, create greater scale to
further drive innovations into the datacenter."
The transaction is expected to be significantly and immediately accretive to
Avago's non-GAAP free cash flow and earnings per share. Avago currently
anticipates achieving annual cost savings at a run rate of $200 million by
the end of the fiscal year ending November 1, 2015, the first full fiscal
year after closing.
Under the terms of the agreement, LSI's stockholders will receive $11.15 in
cash for each share of LSI common stock they hold at closing, which is
expected to occur during the first half of calendar 2014. Avago intends to
fund the transaction with $1.0 billion of cash from the combined balance
sheet and fully-committed financing from the following sources:
-- A $4.6 billion term loan from a group of banks; and
-- A $1 billion investment from Silver Lake Partners, which is expected to
be in the form of a seven year 2% convertible note with a conversion price
of $48.04 per share or preferred stock with equivalent economic terms.
The transaction has been approved by the boards of directors of both
companies and is subject to regulatory approvals in various jurisdictions
and customary closing conditions, as well as the approval of LSI's
stockholders. | m*****t
发帖数: 3477 | 2 This is a sizable one.
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【在 S******s 的大作中提到】
: Avago Technologies Limited (Nasdaq: AVGO) and LSI Corporation (Nasdaq: LSI)
: today announced that they have entered into a definitive agreement under
: which Avago will acquire LSI for $11.15 per share in an all-cash transaction
: valued at $6.6 billion. The acquisition creates a highly diversified
: semiconductor market leader with approximately $5 billion in annual revenues
: by adding enterprise storage to Avago's existing wired infrastructure,
: wireless and industrial businesses. The combined company will be strongly
: positioned to capitalize on the growing opportunities created by the rapid
: increases in data center IP and mobile data traffic.
: "This highly complementary and compelling acquisition positions Avago as a
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