Avago tech is buying Broadcom for $37 billion

Avago technologies is acquiring Broadcom for $US37 billion.

A report in the Wall Street Journal on Wednesday indicated that both companies were in advanced stages of talks about a deal.

“Today’s announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago’s heritage of technology from HP, AT&T, and LSI Logic, in a landmark transaction for the semiconductor industry,” said Avago CEO Hock Tan in the statement.

“The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors.”

Broadcom shares spiked 21% after the news on Wednesday. It is one of the largest semiconductor companies in the world, and its clients include Samsung, Apple and Amazon.

More to come …

NOW WATCH: This simple exercise will work out every muscle in your body

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.