Costa Mesa-based networking equipment maker Emulex Corp. announced it would be acquired for $606 million by Avago Technologies Ltd. The all-cash transaction is expected to close in the second half of the year.
Emulex senior executives and its board, which own about 2.5% of outstanding shares, have signed off on the deal. The company’s technology and connectivity business was attractive to Singapore-based Avago, which specializes in networking products geared for the enterprise storage market, according to Chief Executive Hock Tan.
Emulex has long been considered a takeover target by industry watchers and has a history of activist investors that have pushed for a sale.
Its networking technology has been coveted in the industry as it suffered from a widespread leadership flux and subpar financial performance over the years, particularly after rebuffing a $912 million takeover offer by Irvine-based chipmaker Broadcom Corp. in 2009.
