Broadcom (Frankfurt: 28425279.F – news) on Monday launched a $130 billion bid for rival chip manufacturer Qualcomm (Swiss: QCOM-USD.SW – news) , a deal which could be the largest yet in the technology sector.
The proposal by Singapore-based broadcom, which has announced plans to return its domicile to the United States, would consolidate two major players in the booming sector fueled by growth in smartphones and an array of connected devices from cars to wearables.
Broadcom’s unsolicited proposal amounted to $70 per share, including $60 in cash and $10 in Broadcom stock, or 28 percent above the closing price of Qualcomm on Thursday before reports of the deal surfaced.
“This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products,” said Broadcom chief executive Hock Tan in a statement.
“With (Other OTC: WWTH – news) greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value.”
Qualcomm, based in San Diego, California, said it would “assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders.”
News of the deal came days after Tan appeared at the White House with President Donald Trump to announce plans to move the tech company back to the United States from Singapore.
It comes as Qualcomm seeks a $47 billion acquisition of Dutch rival NXP, a deal that is the subject of an EU anti-trust probe.
Broadcom, meanwhile, is seeking to buy US rival Brocade Communications in a deal being reviewed by Washington.