Avago To Acquire PLX Technology For $6.50/shr Cash - Quick Facts

(RTTNews) - Avago Technologies Ltd. (AVGO), a maker of analog semiconductor devices, Monday said it agreed to acquire PLX Technology, Inc. (PLXT), a provider of semiconductor-based PCI Express connectivity solutions predominantly for enterprise data centers, in an all-cash deal valued at around $309 million, or $293 million net of cash and debt acquired. Avago expects the acquisition to immediately add to adjusted earnings.

Under the terms of the transaction, an unit of Avago will commence a tender offer for all of the outstanding shares of PLX common stock for $6.50 per share. Avago expects to fund the acquisition with cash available on its balance sheet.

"The core PLX PCIe silicon business fits very well with the Avago business model and broadens Avago's portfolio serving the enterprise storage and networking end markets," said Hock Tan, CEO of Avago.

PLX's biggest shareholder, Potomac Capital Partners II, L.P., certain senior members of the PLX management team as well as all of the directors PLX have executed a tender and support agreement in support of the transaction.

The acquisition is scheduled to close in the fourth quarter of Avago's fiscal year ending November 3.