Broadcom makes $130 billion offer for Qualcomm

SAN JOSE, CALIF. — Broadcom Ltd. (Nasdaq: AVGO), which has a major presence in Fort Collins, announced a proposal to acquire Qualcomm Inc. (Nasdaq: QCOM), which has a major presence in Boulder, for $130 billion.

The proposal would be for $70 per share in cash and stock — a breakdown of $60 in cash and $10 of Broadcom stock to Qualcomm shareholders, according to a news release from Broadcom. The proposal is a 28 percent premium over Qualcomm’s closing price as of Nov. 2.

Broadcom, based in San Jose, Calif., supplies semiconductor devices to wired, wireless, enterprise storage and industrial markets. Qualcomm, based in San Diego, is a semiconductor company that makes products like mobile processes, Bluetooth products, Wi-Fi products and cellular modems.

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In September 2015, Qualcomm laid off 158 full-time workers from its Boulder offices. The company has been in Boulder since 1991 and owns a multibuilding campus in Gunbarrel, although it downsized slightly last year.

“Broadcom’s proposal is compelling for stockholders and stakeholders in both companies,” Hock Tan, president and CEO of Broadcom, said in a prepared statement. “Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company. This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products.”

Broadcom’s board of directors has unanimously approved the proposal. For next steps, discussions must take place with Qualcomm.

The proposed transaction would take place about 12 months after the signing of a definitive agreement.

On Nov. 2, Broadcom also filed to redomicile from a Singapore parent company to a U.S.-based corporation.