Avago buys PLX Technology for $309M
Avago Technologies has announced that it has subsumed PCI Express chip vendor PLX Technology for $309 million. The move further extends the portfolio of Avago for sockets in servers with the acquisition of LSI in May 6. The PLX PCIe switch and bridge business complements LSI's I/O and RAID silicon, the company added.
"The core PLX PCI silicon business fits very well with the Avago business model and broadens Avago's portfolio serving the enterprise storage and networking end markets," Avago president and CEO Hock Tan stated.
The deal "makes sense in that some of the core expertise is similar between" PLX and LSI, Linley Group analyst David Kanter told EE Times. "They could be expanding their wallet share to provide more of an overall solution for customers."
Kanter added that Avago's long-term strategy, which focuses on mixed-signal and high-speed opto-electronics, will be complimented by PCI switches and bridges used by PLX. Kanter does not expect the deal to result in job losses.
Avago hopes to close the transition by Nov. 3, 2014. The all-cash deal includes Avago assuming PLX's debt.
- Jessica Lipsky