The offer of $70 per share includes $60 in cash and $10 per share in Broadcom share. Including debt, the deal would be worth $130 billion, Broadcom said in a statement. The offer represents a roughly 28 percent premium to Qualcomm's closing price on Thursday of $54.84, before speculation about a pending offer from Broadcom sent its shares soaring on Friday.
The tie-up would represent the largest technology acquisition ever. Yet its success is far from guaranteed. Bloomberg News reports Qualcomm is preparing to fend off the offer by arguing the bid undervalues its business and could face regulatory scrutiny. Qualcomm is in the midst of its own acquisition with its purchase of NXP Semiconductors.
Broadcom said its offer stood no matter if Qualcomm completes its purchase of NXP.
"This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products," Hock Tan, president and CEO of Broadcom, said in a statement. "We would not make this offer if we were not confident that our common global customers would embrace the proposed combination."
Shares of Qualcomm rose about 2 percent in premarket trading Monday morning.