Avago Agrees to Buy Broadcom for $37 Billion

Chip maker Avago Technologies Ltd. agreed to buy rival Broadcom Corp. for $37 billion in cash and stock, the latest in a wave of deals for the companies that supply parts to power smartphones, tablets and other gadgets. Avago will pay $17 billion in cash and about $20 billion of its own shares. Broadcom investors can choose to receive $54.50 a share in cash or about 0.44 shares in a newly formed Singapore holding company, among other options. They will own about 32 percent of the combined company. After the deal closes, expected by the first quarter of next year, the company will adopt the name Broadcom Ltd. and continue to be led by Avago Chief Executive Hock Tan.