Avago Technologies Limited to Acquire PLX Technology For $309 Million
Avago Technologies Limited to Acquire PLX Technology, Inc. for $6.50 per Share in Cash
— PLX PCI Express products complement Avago’s server storage connectivity and networking ASIC products serving enterprise and data center
— Immediately accretive to Avago’s EPS, on a non-GAAP basis
SUNNYVALE, Calif. and SINGAPORE, June 23, 2014 (GLOBE NEWSWIRE) —
Avago Technologies Limited (Nasdaq:AVGO,) and PLX Technology, Inc.
(Nasdaq:PLXT) today announced that they have entered into a definitive
agreement under which Avago will acquire PLX, a leader in PCI Express
silicon and software connectivity solutions, in an all-cash transaction
valued at approximately $309 million, or $293 million net of cash and
debt acquired. Under the terms of the agreement, which was approved by
the Boards of Directors of both companies, a subsidiary of Avago will
commence a tender offer for all of the outstanding shares of PLX common
stock for $6.50 per share in cash. Avago expects to fund the
transaction with cash available on its balance sheet.“The core PLX PCIe silicon business fits very well with the Avago
business model and broadens Avago’s portfolio serving the enterprise
storage and networking end markets,” stated Hock Tan, President and
Chief Executive Officer of Avago. “Following the closing of the
transaction, we are excited to welcome the PLX team to Avago, and we
are committed to continue to invest in the PLX PCI Express platform.”“Once closed, this transaction will provide immediate value to our
stockholders and offers new growth opportunities for our employees to
develop leading-edge solutions for our customers,” said David Raun,
President and Chief Executive Officer of PLX. “Following the closing of
the transaction, we believe the combination with Avago is an excellent
match for our leading PCI Express portfolio supporting next generation
data center architectures.”The transaction is expected to be immediately accretive to Avago’s
non-GAAP earnings per share. Avago currently anticipates driving the
PLX business model to a level consistent with Avago’s long term
business model by the end of fiscal year 2015, the first full fiscal
year after closing.Potomac Capital Partners II, L.P., which is the largest stockholder of
PLX, certain senior members of the PLX management team and all of the
directors of PLX, collectively owning approximately 14.7% of shares
outstanding on fully diluted basis have executed a Tender and Support
Agreement in support of the transaction. Discovery Group I, LLC, the
second largest stockholder of PLX, has informed PLX that it supports
the transaction.The transaction is subject to customary closing conditions, including
the tender into the offer by PLX stockholders of shares representing at
least a majority of the outstanding shares of PLX common stock on a
fully diluted basis, and the receipt of relevant regulatory approvals,
including the expiration or termination of the applicable waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act and
relevant foreign antitrust laws. It is expected that the transaction
will close in the fourth quarter of Avago’s fiscal year ending November
3, 2014.About Avago Technologies Limited
Avago Technologies Limited (Nasdaq:AVGO) is a leading designer,
developer and global supplier of a broad range of analog semiconductor
devices with a focus on III-V based products and complex digital and
mixed signal CMOS based devices. Avago’s product portfolio is extensive
and includes thousands of products in four primary target markets:
enterprise storage, wired infrastructure, wireless communications and
industrial & other.About PLX
PLX Technology (Nasdaq:PLXT) is the industry-leading global provider of
semiconductor-based PCI Express connectivity solutions primarily
targeting enterprise data center markets. The company develops
innovative software-enriched silicon that enables product
differentiation, reliable interoperability and superior performance.
More information is available at www.plxtech.com.
