LSI to buy Agere for $4 billion

Dec. 4, 2006
December 4, 2006, Milpitas, CA--LSI Logic and Agere Systems have entered into a definitive merger agreement under which the companies will be combined in an all-stock transaction with an equity value of approximately $4.0 billion.

December 4, 2006, Milpitas, CA--LSI Logic and Agere Systems have entered into a definitive merger agreement under which the companies will be combined in an all-stock transaction with an equity value of approximately $4.0 billion. Under terms of the agreement, Agere shareholders will receive 2.16 shares of LSI for each share of Agere they own. Based on the closing stock price of LSI on December 1, 2006, this represents a value to Agere shareholders of $22.81 per share.

The combined company, to be called LSI Logic Corporation, will offer "a comprehensive set of building block solutions including semiconductors, systems and related software for storage, networking and consumer electronics products," according to a press release. The companies had combined revenue of $3.5 billion for the 12 months ended September 30, 2006. They operate in more than 20 countries, with a combined workforce of approximately 9100 employees, and together own a patent portfolio comprising more than 10,000 issued and pending U.S. patents.

The combination of LSI and Agere is anticipated to create a semiconductor and storage systems powerhouse with an unparalleled innovation pipeline and a broad array of competitive, customer-valued products and solutions in large and growing markets. LSI's well-established presence in the storage and consumer electronics markets and Agere's broad footprint in storage, mobility and networking should enable the combined company to drive sustainable long- term growth and shareholder value through the strengthening of its combined platforms and the expansion of its existing customer relationships.

Sponsored Recommendations

March 31, 2025
Enhance your remote sensing capabilities with Chroma's precision-engineered optical filters, designed for applications such as environmental monitoring, geospatial mapping, and...
March 31, 2025
Designed for compatibility with a wide range of systems, Chroma's UV filters are engineered to feature high transmission, superior out-of-band blocking, steep edge transitions...
March 31, 2025
Discover strategies to balance component performance and system design, reducing development time and costs while maximizing efficiency.
March 31, 2025
Explore the essential role of optical filters in enhancing Raman spectroscopy measurements including the various filter types and their applications in improving signal-to-noise...

Voice your opinion!

To join the conversation, and become an exclusive member of Laser Focus World, create an account today!