NEW YORK (TheStreet) -- Even by the standards of the always-consolidating semiconductor industry, Avago Technologies (AVGO) stands out due to the rapidity with which it likes to scoop up its rivals and competitors.
The latest example of that is Avago's recent announcement that it will acquire communications chipmaker Broadcom (BRCM) in a deal worth $37 billion -- $17 billion in cash and $20 billion in stock -- that will close in the first quarter of 2016, if all goes according to plan.
The Broadcom deal comes on the heels of what has been a busy time for Avago.
In May 2014, the semiconductor giant paid $6.6 billion for LSI, and in August of last year, Avago spent $309 million for fabless semiconductor company PLX Technology. Avago then acquired fiber channel storage technology company Emulex for $606 million in February of this year.
Christopher Rolland, an analyst with FBR, said Avago's latest deal sums up what the chipmaker is all about.
"Avago is a consolidator of semiconductor companies," Rolland said. "They have heavy mobile [industry] exposure, so Broadcom's connectivity business fits well with them."
It's a business that also bolsters Avago's position among the leading semiconductor companies worldwide. Avago and Broadcom together accounted for $13.4 billion in sales in 2014, which would make the combined company the sixth-largest chipmaker in terms revenue behind Intel (INTC), Samsung (SSNLF), Qualcomm (QCOM), Hynix (HXSCF) and Micron Technology (MU), according to tech research firm IDC. The combined Avago-Broadcom position jumps to No. 3 overall when the memory chipmakers Samsung, Hynix and Micron are taken out of the equation.