2013年12月17日星期二

Business Avago buys LSI

Business Avago buys LSI

2013/12/16

Avago CEO Hock Tan

Avago CEO Hock Tan


Avago is to buy LSI for $6.6 billion to strengthen its position in storage. The move will create a company with $5 billion annual revenues.

Silver Lake, the private equity company which used to own Avago, is putting up $1 billion of the purchase price. Banks are putting up another $4.6 billion and Avago is funding the rest in cash from the two companies.

Avago sees $200 million in cost saving synergies between the two companies.

“This positions Avago as a leader in the enterprise storage market and expands our offerings and capabilities in wired infrastructure, particularly system-level expertise,” says Avago CEO Hock Tan, “this combination will increase the company’s scale and diversify our revenue and customer base.”



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