Avago Tech is buying Broadcom for $37 billion

Avago technologies is acquiring Broadcom for $37 billion.

A report by the Wall Street Journal on Wednesday indicated that both companies were in advanced stages of talks about a deal.

It is a cash and stock deal, in which Avago is offering Broadcom shareholders $17 billion in cash, and $20 billion of its own shares.

Bloomberg noted that this would be the largest ever merger between chip makers.

"Today's announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago's heritage of technology from HP, AT&T, and LSI Logic, in a landmark transaction for the semiconductor industry," said Avago CEO Hock Tan in the statement.

"The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors," Tan said.

Broadcom shares spiked 21% after the news on Wednesday; Avago jumped as much as 6%.

Broadcom is one of the largest semiconductor companies in the world, and its clients include Samsung, Apple and Amazon.

Avago, based in Singapore, has made at least three acquisitions in the last 13 months.

More to come ...