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.
In addition to the sale of these assets, Avago Technologies has agreed to offer employment to certain employees of the Seagate Sellers engaged in SoC Operations. This move is seen as a strategic decision by both parties as it allows for greater collaboration and sharing of knowledge within the industry.
Seagate Technology LLC and Purchaser have also 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.
The acquisition marks a significant milestone for both companies as they continue to innovate within the technology industry. With this new partnership in place, both parties are able to leverage each other’s strengths and resources to create even more advanced system-on-chip products that will benefit customers around the world.
Overall, this transaction is expected to have a positive impact on both companies’ financial performance as well as their overall market position within the technology sector. By working together closely through this partnership agreement, Seagate Technology and Avago Technologies can continue to push boundaries and develop innovative solutions that will shape the future of technology for years to come.