Boston, MA 12\/18\/2013 (wallstreetpr) – US-based semiconductor technology firm\u00a0LSI Corp (NASDAQ:LSI) is slated to be bought out by Singapore-based semiconductor giant\u00a0Avago Technologies Ltd (NASDAQ:AVGO) in an all-cash deal to the tune of $6.6 billion. The second biggest semiconductor industry acquisition this year will, for the large part, see funding from a consortium of investors, which includes $1 billion from private capital firm Silver Lake Partners in exchange for a seven-year convertible note, and term loans from various banks for about $4.6 billion.<\/p>\n
Riding on news of the concluded merger which ensued a positive third quarter that earmarked its earnings falling in line with expectations, the California-based LSI witnessed its share prices leap ahead by a gigantic 38% to cross the uncharted $10 mark in Monday\u2019s NASDAQ trade. The storage and networking technology provider\u2019s stakeholders are expected to receive about $11.15 in earnings per share from the selloff. For Apple\u2019s major supplier Avago, the coveted deal should eventually consolidate its stature as a leader in the enterprise storage market, apart from augmenting capabilities, customer base and resulting bottom line from its core business lines \u2013 the wired infrastructure, industrial and wireless chip making businesses.<\/p>\n
Touted as the second larger merger both in the history of Avago and the worldwide semiconductor industry and preceded only by the 2006 Avago purchase of USA-based\u00a0 Freescale Semiconductor Ltd (NYSE:FSL) for about $17.6 billion, Avago anticipates the\u00a0LSI Corp (NASDAQ:LSI) transaction to bolster overall dividend yield and free cash flow, in addition to its earnings per share immediately. Meanwhile, investor rights firms, including American shareholder legality firm The Young Law Firm, are said to be investigating the proposed LSI acquisition in order to verify fair value on the sale of LSI as well as LSI shareholders. LSI shares closed their December 17 trading on NASDAQ at $10.92 in close proximity of their landmark 38% jump to Monday\u2019s closing of $10.96, while after-hours figures recorded around $10.91.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 12\/18\/2013 (wallstreetpr) – US-based semiconductor technology firm\u00a0LSI Corp (NASDAQ:LSI) is slated to be bought out by Singapore-based semiconductor giant\u00a0Avago Technologies Ltd (NASDAQ:AVGO) in […]<\/p>\n","protected":false},"author":6,"featured_media":13027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[1],"tags":[4234,4233,4235,4238,4236,4239,4020,4019,4017,1485,4018,4237],"stock_ticker":[],"class_list":["post-13026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-avago-technologies-ltd","tag-avago-technologies-ltd-nasdaqavgo","tag-avgo","tag-freescale-semiconductor-ltd","tag-freescale-semiconductor-ltd-nysefsl","tag-fsl","tag-lsi","tag-lsi-corp","tag-lsi-corp-nasdaqlsi","tag-nasdaqavgo","tag-nasdaqlsi","tag-nysefsl","entry"],"acf":[],"yoast_head":"\n