LSI Logic, Agere Systems to merge
Bangalore, Dec 5 (UNI) LSI Logic Corporation and Agere Systems today announced that they 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 four billion Dollars.
Under the agreement, Agere shareholders would receive 2.16 shares of LSI for each share of Agere they own, a release here said.
The new entity, called LSI Logic Corporation, would offer a comprehensive set of building block solutions, including semiconductors, systems and related software for storage, networking and consumer electronic products. The companies had a combined revenue of 3.5 billion dollars for the 12 months, ending September 2006, and a combined workforce of approximately 9,100 employees.
''LSI and Agere share a rich heritage of innovation and thought leadership in creating enabling technologies that bring people and information together. By joining forces, we expect the combined scale to enable us to extend our franchises in our market segments, realise significant synergies and better serve the needs of our collective customers, shareholders and employees,'' LSI Logic President and CEO Abhi Talwalkar said.
Mr Talwalkar would serve as President and CEO of the new company, to be based in Milpitas, California. The companies expect the transaction to close in the first calendar quarter of 2007.
The LSI also announced that its Board of Directors had authorised a stock repurchase programme of up to 500 million dollars. The repurchases were expected to be funded from available cash and short term investments, the release said.
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