LSI Logic to acquire Agere Systems

LSI Logic to acquire Agere Systems

LSI Logic Corp. has said in a statement that they are going to acquire Agere Systems Inc. This deal would be worth around $4 billion in stock.

LSI specializes in making chips found in DVD recorders and hard drives. And this deal would help them get into the mobile phone chip market.

This deal has put the value of Agere chips at $22.81 per share, which is a 28 percent premium to Agere’s closing price of $17.79 Friday on the New York Stock Exchange.

The merged entity would be 52 percent owned by LSI and 48 percent owned by Agere and it would then be called LSI Logic Corp.

The two companies added in a joint statement that they expected to generate cost savings reaching at least $125 million in 2008.