On Monday, chipmaker Broadcom (NASDAQ: AVGO) announced an unsolicited bid to buy wireless chip maker Qualcomm for $105 million that would make it the biggest technology company deal by far. Broadcom would pay $70 in cash and stock for each share of Qualcomm. However, Broadcom is waiting on Qualcomm’s pending acquisition of NXP Semiconductors at $110 per NXP share. The total combined revenue of the 3 companies would be about $51 billion.
Broadcom has been looking into buying more U.S. companies and has announced plans to move their headquarters to the U.S. The company has been in talks about mergers and acquisitions with other firms already completing 5 major deals since 2013. Right now, the firm is also in the process of acquiring Brocade Communications as well for $5.9 billion. Following the announcement for buying Qualcomm, Broadcom’s stock jumped 2.3%.
“This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products," Hock Tan, president and chief executive officer of Broadcom said in a statement Monday. “We would not make this offer if we were not confident that our common global customers would embrace the proposed combination.’’