Broadcom Limited, a Singapore-based semiconductor manufacturing company. It is known for the products to the whole world. The company very often makes important and profitable transactions. And this time it was just such a deal.
After the rumors over the weekend, the Broadcom chipmaker today confirmed that it approached Qualcomm’s wireless chipmaker with an acquisition offer that estimates the company at $ 130 billion (including $ 25 billion of net debt).
In particular, Broadcom offers to pay $ 70.00 per share of Qualcomm, with $ 60 in cash and $ 10 in Broadcom shares. The company intends to use the debt financing of the project. Broadcom claims that the offer represents a 28 percent premium at the closing price of Qualcomm’s common stock on November 2, 2017, as well as "the last untouched trading day before media speculation about a potential deal."
The Qualcomm representative, contacted by TechCrunch, declined to comment on Broadcomm’s offer at this time. (Although in a press release he confirmed receipt of the proposal and said that the board of directors will evaluate the proposal to continue "an action that meets the interests of Qualcomm shareholders").
The price of shares of Qualcomm closed on Friday at $ 61.81.
Recently, shares of the company suffered a blow after the WSJ reported that Apple plans to abandon Qualcomm components in future iOS devices - in favor of Intel chips or, possibly, MediaTek.
Such acquisitions are often beneficial for both parties. The Cisco and Virtela deal was of the same benefit, thanks to which IT-corporation was able to bring the creation of network devices to a qualitatively new level.