IBM, Intel, and Broadcom have entered into a definitive agreement for a $1 billion purchase of Broadcom’s chip business, according to the companies.
The agreement, the companies announced on Thursday, will create a new, integrated and highly profitable business unit for the companies to work on in the coming years.
“This transaction will enable the companies’ new business units to better leverage their strengths, enhance their products and provide the customers that have relied on them for decades with greater value, and enable our customers to continue to benefit from our global, advanced semiconductor and cloud computing capabilities,” IBM said in a statement.
Under the terms of the agreement, Broadcom will continue to be a wholly owned subsidiary of IBM and will retain its current market share and leadership in the enterprise computing market.
While it remains to be seen if the transaction will be approved by the U.S. Department of Justice, the deal is expected to be announced by the end of the month.
The deal follows a series of deals that Intel and Dell have made with other companies in recent years.
In February, the two companies announced they would merge their respective cloud computing businesses.
In June, Intel acquired chip maker ARM’s semiconductor business for $15 billion.
In December, Dell and Intel also agreed to acquire chip giant ARM’s graphics business for nearly $10 billion.
These deals have largely been in the area of technology, with Intel focusing on the hardware side of the business and Dell focusing on its cloud computing business.
Both Intel and Broadton have been facing growing competition from Amazon and Google.
Last year, the tech giants were also embroiled in a patent lawsuit that threatened to derail their business plans.
Intel has also struggled to compete with smaller companies like Qualcomm and Qualcomm’s own Snapdragon chip.
A year ago, Broadton announced a new product called the Broadcom PowerEdge 7000 that it said would be based on a custom-built microprocessor designed to help customers manage data and data services.
But Broadton has faced challenges in getting enough users to upgrade to the new chip, and in December, it announced that it was cutting ties with Broadcom.
Last month, Broadson also announced it was exiting the chip business after a two-year partnership with Qualcomm, which is one of Broadton’s largest customers.
For its part, Intel is still the world’s largest chipmaker, and it has seen significant growth in its semiconductor businesses over the last few years.
However, it has been hit hard by a series inefficiencies in the market that have made it difficult for it to make money.