Avago Technologies Set to Join S&P 500

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By Trey Thoelcke Published
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Avago Technologies Ltd. (NASDAQ: AVGO) announced Tuesday that it has completed its acquisition of LSI Corp. (NASDAQ: LSI) for $11.15 per share in an all-cash transaction valued at about $6.6 billion. LSI’s common stock will cease to be publicly traded on the Nasdaq after the closing bell Tuesday, and Avago will replace LSI on the S&P 500 after the close of trading on Wednesday, May 7.

Avago said the deal “creates a highly diversified semiconductor market leader with approximately $5 billion in projected annual revenues.” Singapore-based Avago designs, develops and supplies a range of analog semiconductor devices, and LSI develops and markets high-performance storage and networking semiconductors. The increased scale and diversified product portfolio across multiple, attractive end markets is expected to position the combined company to capitalize on growing opportunities created by the rapid growth in data center IP and mobile data traffic.

Avago management plans to discuss its business outlook and provide guidance for the combined company in its second-quarter earnings conference call on Thursday, May 29. LSI’s contribution to financial performance will be included in the company’s third-quarter earnings announcement.

Avago offers shareholders a dividend yield near 1.7%. The share price overtook the mean price target of $67.74 when it reached a new multiyear high of $68.08 Tuesday morning. Shares were up 5.1% in the early afternoon to $67.52.

Shares of competitor Analog Devices Inc. (NASDAQ: ADI) were down fractionally at $51.16, while shares of Finisar Corp. (NASDAQ: FNSR) were down about 4% Tuesday to $23.65.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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