Avago Technologies has announced it is acquiring publicly traded Emulex for $8/share, in an all cash transaction topping $606 million. Avago has been busy the last year or so, buying LSI in December 2013 for $6.6 billion, before selling off LSI's storage business to Seagate in May of last year for $450 million. The combination of Emulex's interconnect solutions and Avago's existing storage adapters and fiber optics make for a broad solutions portfolio. Emulex is expected to operate as a business within Avago's enterprise storage segment.
"Emulex's connectivity business fits very well with Avago's existing portfolio serving the enterprise storage end market," stated Hock Tan, President and Chief Executive Officer of Avago. "We are excited to welcome the Emulex team to Avago." "This combination represents a great opportunity for Emulex and its employees to build upon our history of delivering leading-edge solutions to our customers, while providing immediate value to our stockholders," said Jeffrey Benck, President and Chief Executive Officer of Emulex. "Our leading portfolio is a strong complement to Avago's offerings and capabilities, accelerating our strategy to support next generation server and storage architectures."
The transaction is subject to customary closing conditions but is expected to close in the second half of Avago's fiscal year ending November 1, 2015.
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