Broadcom makes bid to buy Emulex for $764 million

broadcomFollowing a rejection of efforts to purchase the company in January, Broadcom on Tuesday made an unsolicited bid to purchase Emulex for $764 million.

This marks the latest industry move in a data center convergence frenzy involving everyone from Cisco to HP.

Broadcom sent a letter to Emulex’s board of directors Tuesday offering to buy all outstanding shares of Emulex common stock for $9.25 per share, a 40% premium of the closing price of Emulex’s stock on Monday, according to Broadcom.

Both companies are based in Orange County, California — Emulex in Costa Mesa and Broadcom in Irvine. Broadcom produces semiconductors used mainly in communications products, such as communications networks, cell phones and cable set-top boxes. Emulex provides technology for connecting storage, servers and networks in data centers.

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