New York: Singapore-based Avago Technologies announced plans Thursday to buy rival Broadcom in a $37 billion deal creating a mobile chipmaking powerhouse.
The stock-and-cash deal "creates the world`s leading diversified communications semiconductor company," according to a statement from the companies.
The combined firm will have a market value of $77 billion and revenue of $15 billion, according to the statement.
It would be a key player in components in the surging market for mobile devices like smartphones and tablets.
"Today`s announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago`s heritage of technology... in a landmark transaction for the semiconductor industry," said Hock Tan, Avago`s chief executive.
"The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors."
Avago was originally a semiconductor unit of US-based Hewlett-Packard. It has operations in California as well as its Singapore home base.
Tan will head the combined company on completion of the deal, which includes $17 billion in cash and $20 billion in stock. It is expected to close early next year.