Monday, December 4, 2006

LSI Logic, Agere Systems Merge In $4B Deal

Milpitas-based LSI Logic and Pennsylvania-based Agere said early this morning that the firms have agreed to merge in a $4.0 billion deal. The firms said that Agere shareholders will receive 2.16 shares of LSI for each share of Agere stock they own in an all-stock deal. Agere is a provider of semiconductors for the storage and systems industry, and was formerly Lucent's Microelectronics Group and part of Bell Laboratories. The combined company will create a firm with $3.5B in annual revenues and approximately 9,100 employees. LSI was advised in the deal by Morgan Stanley and wilson Sonsini Goodrich & Rosati; Agere was advised by Goldman, Sachs & Co. and Skadden, Arps, Slate, Meagher & Flom.