Avago Technologies Limited (Nasdaq:AVGO) and Broadcom Corporation (Nasdaq:BRCM) have announced that they have entered into a definitive agreement under which Avago will acquire Broadcom in a cash and stock transaction that values the combined company at $77 billion in enterprise value, as detailed in the press release. Upon completion of the acquisition, the combined company (which will operate under the name Broadcom) will have the most diversified communications platform in the semiconductor industry, with combined annual revenues of approximately $15 billion.
Morrison & Foerster is advising Dr. Henry T. Nicholas III, co-founder and former CEO of Broadcom, in connection with the transaction. Dr. Nicholas, who holds a majority of the outstanding Class B stock of Broadcom, has entered into a support agreement in favor of the acquisition, and following the closing will serve in a strategic advisory role within the combined company, reporting to the Chief Executive Officer. Morrison & Foerster’s corporate deal team is led by San Francisco partners Rob Townsend and David Lipkin, with assistance from San Francisco partner Bernie Pistillo on tax matters, Palo Alto partner Erik Olson on corporate governance matters, and San Francisco associate Lisa Bozman.