On April 23, 2024, Seagate Technology and its subsidiaries, Seagate Technology LLC, Seagate Technology HDD (India) Private Limited, and Seagate Singapore International Headquarters Pte. Ltd., entered into an Asset Purchase Agreement (APA) with Avago Technologies International Sales Pte. Limited, a subsidiary of Broadcom Inc. The APA involved the sale of certain intellectual property, equipment, and assets related to the design, development, and manufacture of their system-on-chip products for $600 million in cash.
Seagate Technology LLC and Purchaser have restructured an existing purchasing agreement in connection with the transaction. This agreement includes remedies for both parties in case of non-compliance with the terms, including the option to terminate the relationship before its expiration date.
As part of the agreement, Purchaser and its affiliates have agreed to offer employment to certain employees of the Seagate Sellers engaged in SoC Operations.
The APA was signed on April 23rd by representatives from both companies. The transaction is expected to close within the next few days.
Seagate Technology has been designing and manufacturing system-on-chip products for over two decades. With this sale, they will be able to focus on other areas of their business while Avago Technologies gains access to their expertise in this area.
Avago Technologies is a leading provider of semiconductor solutions for communications and data center applications. They have been expanding their product portfolio and this acquisition will allow them to expand into new markets.
The sale is expected to generate significant revenue for both companies. It is also expected to create new job opportunities for employees involved in SoC operations at Avago Technologies.
