Broadcom Corporation (NASDAQ:BRCM) is going to be selling certain assets and non-exclusive licenses to QLogic Corporation (NASDAQ:QLGC) for $147 million in cash. Broadcom makes chips for around half of the tablets and smartphones in the world. The company supplies chips for Apple iPads and iPhones and Samsung Galaxy phones.
QLogic, a company that supplies switches, controllers, and networking products, will be acquiring 10/40/100Gb Ethernet controller-related assets and non-exclusive licenses to intellectual property that is related to Broadcom’s programmable NetXtreme II Ethernet controller family of products.
QLogic is going to license certain Broadcom patents under a non-exclusive agreement that covers QLogic’s Fibre Channel products in exchange for a licensing fee of $62 million. This deal has been approved by both of the boards and will close in Q1.