NEW YORK (AP) — The chipmaker Avago Technologies Ltd. is buying LSI Corp. for $6.6 billion to help strengthen its position in the enterprise storage market and broaden its offerings.
Avago is based in Singapore, while LSI is based in San Jose, Calif.
LSI shareholders will receive $11.15 per share, a 40 percent premium to the company's Friday closing price of $7.94.
The transaction is expected to immediately add to Avago's earnings per share.
Both company's boards approved the deal, which still needs approval from LSI shareholders.
The transaction is targeted to close during the first half of 2014.