Avago to Acquire Emulex, Complementing Earlier Acquisition of LSI's HDD Storage Controllers
This IDC Flash reviews Avago's announcement about the acquisition of Emulex. On February 25, 2015, Avago announced that it will acquire Emulex in an all-cash transaction for approximately $606 million. The acquisition price represents a 26% premium to Emulex's closing stock price as on February 25, 2015. The acquisition of Emulex by Avago follows Avago's earlier acquisition of LSI Corp. in December 2013 for $6.6 billion in cash. Subsequently, Avago sold LSI's Accelerated Solutions Division (ASD) and Flash Components Division (FCD) to Seagate, and the Axxia Networking product line of LSI to Intel, while retaining LSI's hard disk drive (HDD) controller products. Seagate paid Avago $450 million in cash for the acquisition of ASD and FCD, which closed in 3Q14. Intel acquired the Axxia Networking business and related assets from Avago for $650 million in cash in 4Q14.
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