The new offer is for $60 in cash and $22 in Broadcom stock for each share of Qualcomm. The new offer increased the stock portion by $12.
“Our proposal includes substantially more Broadcom stock, which will allow Qualcomm stockholders a greater opportunity to participate in the upside created by the combined company’s strategic and operational advantages,” said Hock Tan, president and chief executive officer of Broadcom.
The new offer would value Qualcomm at $120 billion and would be the largest acquisition ever in the technology sector.
Qualcomm confirmed it had received the new offer, and said its board will review the revised proposal. In November, the board unanimously rejected the first offer.
The company’s stock was trading at $64.50, down 2.5 percent, an hour after markets opened in New York on Monday.
San Jose-based Broadcom also sweetened its offer with a “ticking fee” that would increase the cash portion if the transaction takes longer than a year to complete and a “reverse termination fee” if government regulators reject the merger. And Broadcom offered to keep Paul Jacobs, son of co-founder Irwin Jacobs, and one other current Qualcomm director on the board of the combined company.
The move comes a month before Qualcomm’s shareholder meeting on March 6, at which Broadcom is seeking to replace Qualcomm’s board of directors with its own slate.