NEW YORK/PARIS Aug 6 Avago Technologies Ltd is close to buying Schneider Electric SA's U.S.-based sensors subsidiary, according to three people familiar with the matter, a deal that could fetch around $1 billion for the French conglomerate.
Avago, a chip maker that began as Hewlett-Packard Co's components division in the 1960s, is in exclusive talks to buy Schneider's Custom Sensors & Technologies unit after beating out a private equity consortium comprising Carlyle Group and PAI Partners in the auction, the people said.
Avago, jointly headquartered in San Jose, California, and Singapore, was spun off from Agilent Technologies in 2005, which itself had been carved out of HP in 1999.
The Schneider subsidiary is valued at around $1 billion, one of the people close to the deal said on Monday. Other people previously said the unit could be worth more than $1 billion.
A Schneider spokeswoman declined to comment, while Avago did not return calls for comment.
All the sources asked not to be identified because the matter is not public.