Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of LSI Corp (NASDAQ:LSI) soared 38% today after wireless semiconductor specialist Avago Technologies (NASDAQ:AVGO) agreed to acquire the storage and networking chip company for $6.6 billion.

So what: The all-cash deal values LSI at $11.15 per share and represents a premium of 41% to its closing price on Friday. Avago is making the move to expand into the high-growth enterprise storage space, and judging by its own stock's 10% pop today, Mr. Market is thrilled with the price management is paying to do it.

Now what: Avago expects the transaction to be immediately accretive to free cash flow and EPS, with annual run-rate savings projected at $200 million. "This combination will increase the Company's scale and diversify our revenue and customer base," said Avago President and CEO Hock Tan. "In addition to these powerful strategic benefits, as we integrate LSI onto the Avago platform, we expect to drive LSI's operating margins toward Avago's current levels, creating significant additional value for stockholders." So while LSI shares might be all popped out at this point, Avago's newly bolstered growth and savings prospects might be worth looking into. 

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.