Broadcom To Acquire Emulex
April 30, 2009 by Sanjay
Irvine, California-headquartered Broadcom Corporation has proposed to acquire all the outstanding shares of Emulex Corporation common stock for USD 9.25 per share in cash. This acquisition will cost Broadcom USD 764 million, and represents a premium of 40% over and above the closing price of Emulex common stock as it stood on end of April 20, 2009. The acquisition rate represents approximately 85% premium to enterprise value.
The acquirer has set aside USD 2.0 billion in cash for such acquisitions in its balance sheet.
Costa Mesa, California-headquartered Emulex Corporation is a 30-year old company with leadership position in converged networking solutions for the data center. Its single framework products connect every server, network and storage device within the data center intelligently. The company’s product portfolio includes controller chips, adapters, blades and connectivity solutions.
Emulex is listed on the New York Stock Exchange (NYSE: ELX). Mr. Paul Folino is presently the Executive Chairman of the company.
For Broadcom, the acquisition will imply that the company will be able to integrate Emulex’s expertise and products in its own networking solutions in the Fiber Channel storage space.
Read the latest development in the domain of M&A in the high-tech world of Ethernet solutions, here.
No comments yet.