Broadcom acquired LSI Corporation for $6.6 billion, a transaction completed in May 2014, structured as all cash.
LSI Corporation operates in Semiconductors (enterprise storage), is based in San Jose, California, USA. Avago Technologies acquired LSI Corporation, a supplier of storage and networking semiconductors, to enter enterprise storage at scale and add system-level expertise in wired infrastructure. The deal created a diversified semiconductor leader with roughly $5 billion in annual revenue and was a foundational step in Avago's roll-up strategy.
Positions Avago as a leader in enterprise storage, expands wired-infrastructure capabilities, and diversifies revenue across attractive end markets; expected to be significantly and immediately accretive to non-GAAP free cash flow and EPS.
Leadership in enterprise storage and networking silicon with system-level expertise, expanding Avago's scale and end markets. ~$200 million of annual run-rate cost savings targeted by the end of FY2015. LSI integrated onto the Avago platform.
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. This combination will increase the Company's scale and diversify our revenue and customer base.Hock Tan, President and CEO, Avago Technologies
This transaction provides immediate value to our stockholders, and offers new growth opportunities for our employees to develop a wider range of leading-edge solutions for customers. Our leadership positions in enterprise storage and networking, in combination with Avago, create greater scale to further drive innovations into the datacenter.Abhi Talwalkar, President and CEO, LSI Corporation
Advisory firms were not disclosed for this transaction.