Silicon-to-system provider, LSI Logic announced today its definite plans to merge with semiconductor manufacturer Agere Systems. The resulting company will be named LSI Logic Corporation and hopes to combine the experience of both companies to form a united front to face an ever more competitive market.
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.
According to LSI Logic, Agere shareholders will receive 2.61 shares of LSI Logic stock, or about $22.81 per share for a total transaction of $4 billion. It seems that LSI Logic doesn’t plan any immediate lay-offs after the acquisition, though there is no official word on that yet. The acquisition still has to be approved by the shareholders of each company and cleared by the proper authorities.