Update (4:40 p.m.): Updated with Monday market close information.
The two companies valued the deal at approximately $309 million. Avago would commence a tender offer for all outstanding PLX shares at $6.50 a share. The deal should close in the fourth quarter of Avago's fiscal year.
The stock closed up 9.09%, or 54 cents, to $6.48. More than 15.7 million shares changed hands, which eclipsed the average volume of 246,461.
Separately, TheStreet Ratings team rates PLX TECHNOLOGY INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PLX TECHNOLOGY INC (PLXT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: