Dallas, Texas 01/08/2014 (FINANCIALSTRENDS) – Avago Technologies Limited (NASDAQ:AVGO) following the announcement of its $6.6billlion deal to take over LSI has been trending high on the stock markets. Interestingly, for the sector, it is not a solo run for just this company but a combined rally for other chip makers in the filed- Philadelphia Semiconductor as well .
Avago’s handsome win with the LSI deal
Avago Technologies Limited (NASDAQ:AVGO) has notched a creditable win in the industry market place with the successful acquisition of LSI. Considering that LSI is a top of the line storage and network component maker- controllers, adapters and more, and AVAGO is a Radio-Frequency company with a major line of component sales in opticals, the merging of these two spectrums of technology portfolios is indeed promising.
As the company follows the route of merger and acquisition to broaden its product portfolio and increase the rich diversity in the products it offers, there is a lesson for other semiconductor technology companies. Technology development is constant and as advances in technology led to more specialized components, it makes sense to either develop product lines which persue the latest technology or acquire, merger with companies which have the specialization in the new area of technology. Remaining relevant to the industry is the first step to survival, prices and cost-effective do play a significant role.
Avago Technologies Limited (NASDAQ:AVGO) is a semiconductor industry-based technology company located in the US and offers broad spectrum products such as optoelectronics, microelectronic components, application-related integrated circuits and more. It is one of the top-names in the industry and currently trades at $52.99 and holds market capital of $13.1 billion and trading volume of 1,335,857. The company has a 52week high of $54.54 and 52 week low of $30.57 and EPS of 2.19. It has dividend rate of 1.00 and yield is 1.90.