(Telecompaper) Avago Technologies confirmed an agreement to acquire Broadcom for USD 37 billion in cash and shares. The latest merger in the semiconductor industry creates a company with annual revenues of USD 15 billion and a complete range of products for the fixed and wireless communications industries. Avago's CEO Hock Tan will lead the combined company, which will continue under the name Broadcom. Henry Samueli, co-founder, CTO and chairman of Broadcom, will serve on the new company's board, as will one other director from Broadcom. Samueli will also remain CTO of the company and serve as strategic adviser. Under the terms of the deal, Avago will pay USD 17 billion cash and 140 million of its shares, valued at USD 20 billion according to the latest share price, for all of Broadcom's stock. Shareholders of Broadcom will be able to elect for cash, shares or a combination of the two. A pro rata allocation assuming 50 percent shares and 50 percent cash would give shareholders of Broadcom 32 percent of the new group. Avago will fund the cash consideration with cash on hand from the combined companies and a new debt facility from a bank consortium worth USD 9 billion. The transaction has been unanimously approved by the boards of directors of both companies, as well as a special committee of the independent directors of Broadcom. Closing of the deal is expected by the end of the first calendar quarter of 2016, subject to regulatory and shareholder approvals.