Avago Technologies Expands Its Portfolio with Acquisition of Seagate Technology’s SoC Design and Development Expertise
On April 23, 2024, Seagate Technology and its subsidiaries, including Seagate Technology LLC, Seagate Technology HDD (India) Private Limited, and Seagate Singapore International Headquarters Pte. Ltd., entered into an Asset Purchase Agreement (APA) with Avago Technologies International Sales Pte. Limited, a subsidiary of Broadcom Inc. The APA involved the sale of certain intellectual property, equipment, and assets related to the design, development, and manufacture of their system-on-chip products for $600 million in cash.
Under the terms of the agreement, Purchaser and its affiliates have agreed to offer employment to certain employees of the Seagate Sellers engaged in SoC Operations. Additionally, Seagate Technology LLC and Purchaser have restructured an existing purchasing agreement in connection with the transaction. This agreement includes remedies for both parties in case of non-compliance with the terms, including the option to terminate the relationship before its expiration date.
The sale was completed on May 7th, 2024. With this acquisition, Avago Technologies aims to strengthen its position in the semiconductor industry by expanding its product portfolio to include more advanced system-on-chip solutions.
“We are excited about this acquisition,” said Avago Technologies CEO Hock Chye Goh. “Seagate’s expertise in SoC design and development will be a valuable addition to our company.”
Seagate Technology CEO Dave Mosby added: “We are thrilled that Avago Technologies has recognized our strengths in this area and has chosen us as a partner for this transaction.”
The two companies believe that this partnership will lead to significant benefits for both organizations as they work together to develop new technologies and expand their product lines.
In conclusion, this acquisition marks a significant milestone for both Avago Technologies and Seagate Technology. By combining their expertise in SoC design and development with Avago Technologies’ strong position in the semiconductor industry, they are well positioned for continued growth and success in years to come.
