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.
The APA also included provisions for employment opportunities for certain employees of the Seagate Sellers engaged in SoC Operations at Purchaser and its affiliates. In addition to this agreement, Seagate Technology LLC and Purchaser 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.
This acquisition marks a significant milestone for Avago Technologies International Sales Pte. Limited as they continue to expand their product portfolio and enhance their capabilities in the semiconductor industry. The purchase of these assets from Seagate Technology will provide Avago Technologies with valuable intellectual property and expertise that will enable them to develop new system-on-chip products that meet the needs of their customers.