Chipmaker Cavium is buying network equipment maker QLogic for about $1.36 billion. Today’s acquisition of QLogic is highly complementary and strategic to Cavium and it creates a diversified pure-play infrastructure semiconductor leader,” said Syed Ali, Chief Executive of Cavium. The transaction is expected to close in the third quarter of calendar year 2016 pending customary closing conditions.

The transaction will be funded with a combination of $220 million balance sheet cash, $750 million of committed financing, which includes $650 million of term loan and $100 million of short-term bridge debt, and $400 million in new Cavium equity.

J.P. Morgan acted as financial adviser and provided a financing commitment to Cavium; Skadden, Arps, Slate, Meagher & Flom acted as Cavium’s legal counsel. Qatalyst Partners acted as exclusive financial adviser to QLogic and O’Melveny & Myers acted as QLogic’s legal counsel.