Broadcom Proposes To Acquire Qualcomm In Approx. $130 Bln Deal - Quick Facts

(RTTNews) - Broadcom Limited (AVGO) announced a proposal to acquire all of the outstanding shares of Qualcomm Incorporated (QCOM) for per share consideration of $70.00 in cash and stock. The per share consideration would consist of $60.00 in cash and $10.00 per share in Broadcom shares. The proposed transaction is valued at approximately $130 billion on a pro forma basis, including $25 billion of net debt, giving effect to Qualcomm's pending acquisition of NXP on its currently disclosed terms.

Broadcom said the company is prepared to engage immediately in discussions with Qualcomm to work toward a mutually acceptable definitive agreement and is ready to devote all necessary resources to finalize the necessary documentation on an expeditious basis.

"Our proposal stands whether your pending acquisition of NXP is consummated on the currently disclosed terms of $110 per share or that transaction is terminated," Broadcom stated.

The combined Broadcom and Qualcomm, including NXP, will have pro forma fiscal 2017 revenues of approximately $51 billion and pro forma 2017 EBITDA of approximately $23 billion, including synergies. Broadcom expects that the proposed transaction would be completed within approximately 12 months following the signing of a definitive agreement. The transaction is expected to be accretive to Broadcom's Non-GAAP EPS in the first full year after close.