Avago said the deal will help it expand into the enterprise storage segment and create a business with annual revenues of $5bn.
Silver Lake will provide a seven year two per cent convertible note with a conversion price of $48.04 per share.
Avago CEO Hock Tan said, “This highly complementary and compelling acquisition positions Avago as a leader in the enterprise storage market and expands our offerings and capabilities in wired infrastructure, particularly system-level expertise.
“This combination will increase the Company’s scale and diversify our revenue and customer base.”
Silver Lake is reportedly planning to raise a $1bn fund to invest in mid-size companies.
In September this year Silver Lake and Dell CEO Michael Dell secured shareholder approval for their $24.4bn take-private offer for the computer maker.
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