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.
As part of the agreement, Avago Technologies International Sales Pte. Limited has agreed to offer employment to certain employees of the Seagate Sellers engaged in the SoC Operations. Additionally, Seagate Technology LLC and Avago Technologies International Sales Pte. Limited 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.
The sale of these assets will enable Seagate to focus on its core business operations and reduce its exposure to lower margin businesses. The proceeds from this sale will be used by Seagate to invest in research and development initiatives that will drive growth in its core business segments.
Avago Technologies International Sales Pte. Limited is a leading supplier of high-performance components for communication systems and data centers worldwide. It is a subsidiary of Broadcom Inc., a semiconductor company that provides solutions for wired and wireless communication systems.
In conclusion, this acquisition marks a significant milestone for both companies as they continue to grow their businesses through strategic partnerships and acquisitions.
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