Cavium Buys QLogic for $1B

Deal expands vendor of data center chips

by Rick Merritt - EETimes, Jun. 21, 2016 – 

SAN JOSE, Calif. - Cavium Inc. will take on Broadcom, Intel and Mellanox in storage and networking with its billion-dollar acquisition of Qlogic Corp. The deal teams one of the semiconductor's fastest growing companies with one just starting to emerge from a decline.

The acquisition adds Qlogic's Fibre Channel and Ethernet controllers and boards to Cavium's line up of communications, security and general-purpose processors, positioning Cavium as more of a full-line supplier to data centers. The deal also gives Cavium a mature software stack in storage and networking and operational savings expected to amount to $45 million a year by the end of 2017.

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