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Avago Technologies acquired Broadcom Corporation in a cash-and-stock deal announced in 2015 and completed on February 1, 2016. For most people who use phones, Wi-Fi routers, storage systems or other electronics, the effect was indirect: the combined company supplied components and technology to equipment makers, rather than launching a new consumer product. The companies presented the merger as a way to give customers access to a broader technology portfolio, but the official figures do not establish a specific price cut or performance improvement for consumers.
What was the Avago-Broadcom deal?
It was Avago Technologies’ acquisition of Broadcom Corporation—not a purchase of Avago by Broadcom and not a consumer-device launch. Avago announced the cash-and-stock transaction on May 28, 2015. The deal closed on February 1, 2016, according to a 2017 U.S. Securities and Exchange Commission (SEC) filing describing the close.
After closing, Broadcom became the ultimate parent of Avago and Broadcom Corporation. The combined business operated under the Broadcom name. This distinction explains why the buyer was Avago at announcement even though Broadcom became the parent after the merger.
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How large was the transaction?
Broadcom’s 2015 announcement put the transaction consideration at $37 billion and the combined company’s enterprise value at $77 billion. It also projected combined annual revenue of approximately $15 billion. These are announcement-era figures, not measures of a consumer benefit or of later performance.
#1 Best Overall
- The network adapter comes with low-profile bracket and full height bracket.8 cm low-profile bracket suitable for 2U chassis,the 12 cm full height bracket suitable for 3U common chassis
- PCl Express PCle v1.1(2.5GT/s)X1,easily compatible with slot PCI-E X1,X2,X4,X8,X16 ,pay attention:isn't compatible with PCI slot.
- I/O virtualization (IOV) support for VMware NetQueue and Microsoft VMQ
- Automatic Detection and Correction of Pair Swaps, Pair Skew and Pair Polarity
- Network Operating Systems (NOS) Software Support: Windows* 2000; Windows* Server 2003; Windows* Server 2008; Windows Professional XP* SP3; Windows Vista* SP1; Windows 7; Linux* RHEL 4.6; Linux* Kernel version 2.6.24; Linux* Kernel version 2.4.36.2; RHEL* 5.1; SLES* 9 SP4; SLES* 10 SP1; FreeBSD* 7.0; DOS*; DOSODI*; SCO OpenServer 6/Unixware* 7.1.x; Novell Netware* 6.5; Xen*; FreeBSD* 5.x or later; ESX* 3.x* support (for VMware).
The SEC filing of the merger terms describes the consideration in more detail: $17 billion in cash and the economic equivalent of approximately 140 million Avago ordinary shares. Under those filed terms, Broadcom shareholders were expected to own approximately 32% of the combined company.
The SEC’s 2017 filing describes what Broadcom Corporation shareholders received in aggregate at closing: approximately $16.8 billion in cash, 112 million Broadcom ordinary shares and 23 million partnership interests. Those close-related amounts describe the distribution to Broadcom Corporation shareholders; they are not interchangeable with the announcement’s headline valuation or the merger agreement’s stated economic terms.
Rank #2
- Wide Compatibility: The BCM5719-4P is compatible with x86 and x64 servers utilizing the PCIe v1.x and v2.x interfaces
- Flexible Installation Options: PCIe x4 interface, compatible with pci-e x8 and x16 slots, and comes with Low Profile Bracket for various chassis configurations
- Versatile Application Support: Wide range of applications including Cloud and Web2.0 data center servers, Enterprise data center servers, Private Cloud, Machine Learning (ML) clusters, High-Performance Computing (HPC) clusters, Multi-node container platforms, NVMe storage disaggregation (NVMe-oF), and Database servers
- Comprehensive Operating System Support: Compatible with CentOS, Debian, Microsoft Windows, Oracle Linux, Oracle Solaris, Red Hat Enterprise Linux, SUSE Linux Enterprise Server, Ubuntu, VMware ESX (Esxi 5/6/7/8), VMware vSphere, Windows Hyper-V, and Windows Server
- Quad-Port Gigabit Performance: Features four independent 10/100/1000 Mbps Ethernet ports with NetXtreme BCM5719 Chipset, delivering full line-rate performance across all ports simultaneously
What did the companies say customers would gain?
The companies’ rationale was that a larger portfolio could serve more parts of the technology market. Broadcom’s 2015 announcement described the combined portfolio as spanning wireless communications, enterprise storage, wired infrastructure and industrial markets. Broadcom President and CEO Scott McGregor said, “Our customers will gain access to a greater breadth of technology and product capability.”
That promise was directed primarily at equipment and device makers buying semiconductor components and platforms. A broader supplier portfolio could give those companies access to more technologies from one combined business; the announcement does not quantify how much that would change a particular product or customer’s costs.
Rank #3
- Porter: Gigabit Ethernet x 2
- Transmission technology: The cable
- Cable type: Ethernet 10Base-T, Ethernet 100Base-TX, Ethernet 1000Base-T
- Data Chain Protocol: Ethernet, Fast Ethernet, Gigabit Ethernet
- Data transfer speed: 1 Gbps
What might the deal mean for you?
| Who you are | What the deal could mean | What the available figures establish |
|---|---|---|
| Phone, router or other device user | Any effect would reach you through products made by companies that use Broadcom components or technology—not through buying an “Avago-Broadcom” consumer product. | The company materials describe markets and product breadth, not a specific consumer price or performance change. |
| Equipment maker or technology customer | The combined portfolio was intended to offer access to technologies across wireless, storage, wired infrastructure and industrial markets. | Broadcom’s 2015 announcement stated that customers would gain broader technology and product capability; it did not quantify a benefit for an individual customer. |
| Shareholder considering the transaction terms | The merger exchanged cash and equity, changing the ownership structure of the combined company. | The SEC’s 2015 filing set out $17 billion in cash, approximately 140 million Avago shares as the economic equivalent, and expected ownership of approximately 32% for Broadcom shareholders. |
| Anyone assessing execution | Combining businesses carries risks that can affect whether the intended benefits are achieved. | Avago’s 2015 SEC disclosure identified integration, debt, customer retention and synergy execution as risks. |
For end users, the practical takeaway is limited but useful: the merger changed the supplier behind some technologies used in downstream equipment. The cited announcement and filings do not demonstrate that any particular phone, home network or storage device became cheaper, faster or otherwise better because of the deal.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What risks came with the merger?
Avago’s 2015 SEC disclosure identified integration, debt, customer retention and the execution of planned synergies as risks. These are relevant because the strategic case depended on combining businesses and retaining customers while managing the transaction’s financial and operational demands. The disclosure identifies risks; it does not by itself establish whether any particular risk later materialized or quantify a realized synergy.
Quick Recap
Rank #4
- NIC Controller: 10Gb Network Card equipped with original Broadcom BCM57810S Controller, which supports Quality-of-Service (QoS) technology to streamline your online experience and ensure stability
- Dual SFP+ PCI-E NIC: 10Gb Dual SFP+ Ports support 10G SFP+ module/ DAC /AOC Cable, offer a dramatic 10x speed increase over standard Gigabit adapters, reaching speeds of up to 10 Gbps; (Also compatible with 1 Gbps.) PCI Express 2.0. 5.0 G T/s x 8 Lane, compatible with PCIE X8, X16 Slot
- Widely Compatible OS: Windows 7/8/10, Windows Server 2008/2012/2016/2019, Centos/RHEL 6/7/8, Ubuntu 16/18/19/20, Debian 9/10/11,FreeBSD 10/11/12, Vmware Esxi 6/7, SLSE 11/12. (Not support Mac OS and Bypass Mode)
- Easy to install: Packed with Both Full-height Bracket and Low Profile Bracket that support on Standard and Slim computer/server; Scan the QR code on the network card to download the driver immediately
- Friendly Customer Service: Provides 24/7 Customer Service, 30 Days Free-returned, 3 Year Free Warranty and Lifetime Technology Support
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