Avago to buy Emulex
Avago Technologies has today announced that it will acquire Emulex, a US company involved in network connectivity, monitoring and management, in an all-cash transaction valued at approximately $606 million, or $609 million net of cash and debt acquired.
Under the terms of the agreement, which has been approved by both company's boards of directors, a subsidiary of Avago will commence a tender offer for all of the outstanding shares of Emulex common stock for $8 per share in cash. Avago expects to fund the transaction with cash available on its balance sheet.
"Emulex's connectivity business fits very well with Avago's existing portfolio serving the enterprise storage end market," stated Hock Tan, president and CEO of Avago. "We are excited to welcome the Emulex team to Avago."
"This combination represents a great opportunity for Emulex and its employees to build upon our history of delivering leading-edge solutions to our customers, while providing immediate value to our stockholders," said Jeffrey Benck, president and CEO of Emulex. "Our leading portfolio is a strong complement to Avago's offerings and capabilities, accelerating our strategy to support next generation server and storage architectures."
Emulex, headquartered in Costa Mesa, California, provides connectivity, monitoring and management solutions for high-performance networks, delivering provisioning, end-to-end application visibility, optimisation and acceleration for the next generation of software-defined, telco and Web-scale data centres.