Hrach_Techie
Dec 5, 2006, 06:55
In a major merger announcement today, Milpitas, Calif.-based LSI Logic Corp. (http://www.lsi.com/) and Allentown, Pa.-based Agere Systems Inc. (http://www.agere.com/) said they have entered into a definitive agreement under which the companies will be combined in an all-stock transaction with an equity value of approximately $4 billion.
Under the 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, this represents a value to Agere shareholders of $22.81 per share, the companies said. LSI will be taking the upper hand in the deal: LSI and Agere shareholders will own approximately 52 percent and 48 percent, respectively, of the combined company.
Agere, which announced last month (http://www.edn.com/article/CA6387336) it was finally back in the black, went through a rocky year (http://www.edn.com/article/CA6356026) financially.
The combined company, to be called LSI Logic Corp., will offer semiconductors, systems and related software for storage, networking and consumer electronics products. The companies operate in more than 20 countries, with a combined workforce of approximately 9,100 employees.
http://www.edn.com/article/CA6396828.html?partner=enews&nid=2019&rid=1421989337
Under the 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, this represents a value to Agere shareholders of $22.81 per share, the companies said. LSI will be taking the upper hand in the deal: LSI and Agere shareholders will own approximately 52 percent and 48 percent, respectively, of the combined company.
Agere, which announced last month (http://www.edn.com/article/CA6387336) it was finally back in the black, went through a rocky year (http://www.edn.com/article/CA6356026) financially.
The combined company, to be called LSI Logic Corp., will offer semiconductors, systems and related software for storage, networking and consumer electronics products. The companies operate in more than 20 countries, with a combined workforce of approximately 9,100 employees.
http://www.edn.com/article/CA6396828.html?partner=enews&nid=2019&rid=1421989337