Into the enterprise storage areas, Singapore Manufacturers Avago to $ 6.6 billion acquisition of LSI




Into the enterprise storage areas, Singapore Manufacturers Avago to $ 6.6 billion acquisition of LSI

LSI was acquired Avago, in order to extend enterprise storage product line.

Avago unexpectedly announced at the 16th LSI has entered the final stage of resolution, will be in Singapore for the background Avago $ 11.15 per share (approximately NT $ 330.5 yuan) in cash to acquire LSI, the transaction amount of up to $ 6.6 billion (approximately NT 195.6 billion $ 33.9 million).

Acquisition if it goes through, LSI will be Avago than existing wireless, wireline and infrastructure work, the first enterprise storage sector, the two combined estimated annual revenue will reach $ 5 billion (about NT $ 201 750 1,482 million) for the semiconductor industry leader, let Avago escalating data center in intellectual property and mobile data traffic demand, there is a better strategic position.

This acquisition will enable Avago to become the market leader in enterprise storage, enterprise systems to enhance Avago level, is to provide the market with more options and features.

Avago Hock Tan, president and chief executive, said: “This combination will expand the size of the company, and to gain a more diverse sources and customers in addition to the masses on the benefits of these strategies, but in the process we will be integrated into LSI Avago platform. We will make LSI’s expected operating profit closer Avago, create significant additional value for shareholders. ”

The acquisition is expected to have a non-generally accepted accounting principles Avago cash flow and EPS growth to generate immediate effect. Avago is expected before the end of the current fiscal year November 1, 2015 can save $ 200 million annual expenditure.

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