The roots of Avago Technologies Ltd. go back to the early 1960s when it was a part of Hewlett-Packard (NYSE: HPQ). Since then, the company has been spun out (in 1999) and even underwent a leveraged buyout -- with the private equity sponsors of KKR and Silver Lake (in 2005). They both own about 80.9% of the outstanding shares.
Now, Avago is prepping to become a public company again. Although, in light of the current state of the markets, the deal could be a tough sale.
Avago develops a wide range of analog semiconductor devices (the portfolio includes about 7,000 products). There are more than 5,000 patents on the technology.
Moreover, Avago's base is extensive, with about 40,000 customers across the world. For the past 12 months, the company posted revenues of about $1.527 billion.
Interestingly enough, one of the underwriters on the public offering is KKR Capital Markets. Yes, this is KKR's attempt to diversify its business platform. No doubt, this will be a critical test case as KKR plans to become a public company in Q4.
If you want to learn more about the public offering, you can find the prospectus at the SEC website.
Tom Taulli is the author of various books, including The Complete M&A Handbook
