- Ahead of the Broadcom merger, Avago (AVGO -4%) is selling its optical module unit to contract manufacturing giant Foxconn for a yet-undisclosed sum. Over 900 Avago employees will join Foxconn.
- Avago will hold onto its optical component business, and serve as Foxconn's exclusive optical component supplier. The deal comes two years after Avago bought optical component maker CyOptics for $400M.
- Though its acquisitions (CyOptics, LSI, PLX, Emulex, and soon Broadcom) have received more attention, Avago hasn't been shy about selling assets along the way. Last year, the company sold its flash storage module/controller chip business to Seagate for $450M, and its Axxia network processor unit to Intel for $650M.
- Shares are selling off on a morning the Nasdaq is down 0.6%, and the Philadelphia Semi Index down 2.4%.