Avago Will Buy LSI for $6.6 Billion to Gain Storage Chips

Avago Technologies Ltd., a chip manufacturer that began as a unit of Hewlett-Packard Co., agreed to buy LSI Corp. for $6.6 billion, gaining semiconductors for disk drives and other electronics.

Avago will pay $1 billion in cash and use a $4.6 billion bank loan, the companies said in a statement today. Silver Lake Partners, a private-equity firm that helped acquire Avago before its initial public offering in 2009, will provide a $1 billion investment toward the all-cash purchase.