The Axxia business mainly includes networking and infrastructure products for wireless networks and enterprise gateways.
Avago bought LSI in December last year for $6.6 billion, and has been divesting units as it seeks to counter volatility in its main wireless business and focus on the fast-growing storage chip market.
The company, which designs and develops analog semiconductors and was once part of Hewlett-Packard Co (HPQ.N), said in May it would sell LSI’s flash storage business to hard drive maker Seagate Technology Plc (STX.O) for $450 million in cash.
The companies said the deal is expected to close in the fourth calendar quarter of 2014.
Reporting by Ramkumar Iyer in Bangalore; Editing by Lisa Shumaker