The Wall Street Journal is reporting today that San Jose-based Avago Technologies is in “advanced talks” to acquire Broadcom Corporation, a leading maker of wireless integrated chipsets for mobile devices, servers and telecommunications equipment.
Terms of the deal were unclear, however Broadcom’s market value as of Wednesday afternoon was listed at some $28 billion. Avago, which is strong in analog and mixed signal devices, is listed only slightly higher. Shares of both companies rose on publication of the story.
UPDATE: Avago on Thursday morning confirmed that Broadcom has accepted a cash and stock acquisition offer. The $37 billion deal includes $17 billion in cash and some $20 billion worth of Avago shares, making this the largest ever merger between chip makers.
“The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors,” said Avago CEO Hock Tan in a statement.
Broadcom shares jumped 21 percent on Wednesday after initial reports of a deal, while shares of Avago increaseed 6 percent.
The boards of both companies have agreed to the deal, which is expected to close by the end of the first quarter of 2016, said an Avago statement.
[Disclosure: Dan Holden has worked as a social media strategist for Broadcom in the past.]