Avago Technologies looking to buy chipmakers
Avago Technologies, with $10 billion to spend, is reportedly eyeing two other San Jose-based chipmakers — Xilinx and Maxim Integrated Products — as well as one based in Japan — Renesas Electronics.
Reuters cited unnamed sources who said the company led by CEO Hock E. Tana has reached out to potential targets, but none of its offers have yet led to any advanced discussions.
It said that is, in part, because Avago is afraid of overpaying for any of the companies involved.
The current market cap of Xilinx, led by CEO Moshe Gavrielov, is about $12 billion. The market cap of Maxim, led by CEO Tunc Doluca, is about $9.6 billion.
Tokyo-based Ranesas is valued at close to $13 billion.
Reuters reported that Avago has also spoken to private equity firm Silver Lake Partners partnering on an acquisition, if it decides to go after any of its targets.
Avago was created in 2005 when Silver Lake and KKR bought Hewlett-Packard’s semiconductor unit Agilent. Neither private equity firm now has any stake in the company but Silver Lake helped Avago buy LSI last year for $6.6 billion.