Why Avago Technologies (AVGO) Stock Is Up Today

NEW YORK (TheStreet) --Shares of Avago Technologies Ltd. (AVGO) are up 3.97% to $66.80 on Tuesday after the company announced it has completed its acquisition of LSI Corporation (LSI).

Avago Technologies, which designs, develops and supplies a range of analog semiconductor devices focusing III-V based products, paid $11.15 per share for LSI Corp, which develops and markets high-performance storage and networking semiconductors.

The purchase was an all-cash transaction valued at $6.6 billion.

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The company said the deal "creates a highly diversified semiconductor market leader with approximately $5 billion in projected annual revenues."

Avago Technologies will replace LSI Corp. on the S&P 500 after the close of trading on Wednesday, May 7.

TheStreet Ratings team rates AVAGO TECHNOLOGIES LTD as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AVAGO TECHNOLOGIES LTD (AVGO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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