Avago Technologies to acquire PLX Technology

Avago Technologies, the company, which agreed to sell its solid-state drive-related assets to Seagate earlier this year, announced plans to acquire PLX Technologies, a company which is widely known for its PCI Express bridges and switches used on multi-GPU graphics solutions as well as on sophisticated mainboards for enthusiasts.

“The core PLX PCIe silicon business fits very well with the Avago business model and broadens Avago's portfolio serving the enterprise storage and networking end markets,” stated Hock Tan, president and chief executive officer of Avago. “Following the closing of the transaction, we are excited to welcome the PLX team to Avago, and we are committed to continue to invest in the PLX PCI Express platform.”

As the PCI Express interconnection technology gets more advanced, more devices start to use it for internal and external interconnections. For example, back in 2012 PLX Technology and Kontron developed a way to use the PCI Express technology as a backplane interconnect. The external PCI Express architecture built around PLX ExpressLane PCIe 3.0 switches and Kontron’s single-board computers (SBCs) achieved 5.6GB/s data throughput between any boards in a VPX rack. The acquisition of PLX will help Avago to grow its business.

The two companies signed definitive agreement under which Avago will acquire PLX in an all-cash transaction valued at approximately $309 million, or $293 million net of cash and debt acquired.

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KitGuru Says: Most likely the acquisition will have no impact on the market of graphics hardware. Still, some acquisitions may cause very  unexpected effects…

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