AUSTIN, Texas and ALLENTOWN, Pa.- June 26, 2002 -- Legerity, Inc., a leading supplier of integrated circuits for voice network access and voice-over-broadband applications, and Agere Systems (NYSE: AGR.A, AGR.B), the world leader in communications components, today announced Legerity will acquire Agere’s analog line card integrated circuit business for $70 million in cash.
The transaction includes the products, technology and intellectual property related to Agere’s analog line card business, which provides integrated circuits, or microchips, used in telephone network equipment. The sale will allow Legerity to extend its expertise in this market, and enables Agere to focus its resources on developing advanced components that form the building blocks for next-generation network applications.
As part of the transaction, approximately 50 employees of Agere’s analog line card business will join Legerity. Agere and Legerity anticipate closing the transaction in the third calendar quarter of 2002, subject to regulatory approval and other customary closing conditions.
“Legerity is a recognized leader in voice network access and voice over broadband semiconductor solutions. This agreement will provide Agere customers and business partners strong confidence in the continued availability and future extensions of these product families,“ stated Ron Van Dell, president and chief executive officer of Legerity. “This business is very complementary to our current product offerings. It enhances Legerity’s opportunities in key growth markets in Asia while simultaneously adding a world-class team to Legerity,” added Van Dell.
Through a transitional supply agreement, Agere will supply chips for Legerity through early 2003 to ensure seamless service to customers. Agere currently manufactures the majority of these chips at its Reading, Pa., facility.
“Today’s announcement is another step in our continuing efforts to streamline our business," said Sohail Khan, executive vice president of Agere's Infrastructure Systems Group. "This sale is consistent with our long-term strategy to develop component and subsystem networking solutions aimed at enabling high-speed, multi-service networks that will increasingly integrate voice, data and video capabilities.”
In the last several months, Agere has taken a number of actions to sharpen its strategic focus. In December, the company sold its field-programmable gate array (FPGA) business and last week sold its Wireless LAN equipment business.
About Legerity
Legerity, an analog/mixed-signal IC company focusing on next-generation voice and data networks, develops semiconductor products that enable voice over broadband, packet voice, public voice networks and xDSL line drivers for the new public infrastructure. Legerity is the only fabless semiconductor company that manages its own high-voltage, high-speed bipolar process. Legerity combines its high-voltage and CMOS process technologies, analog and digital circuit design capabilities, more than 600 patents, and extensive systems and field applications expertise to meet the design challenges of enterprise and telecommunication system manufacturers worldwide. Headquartered in Austin, Texas, Legerity has offices throughout North America, Europe and Asia. Visit Legerity on the Web at www.legerity.com. Major investors in Legerity include Francisco Partners and the Sprout Group.
About Agere Systems
Agere Systems is the world’s leading provider of communications components. The company delivers integrated circuits, optical components and subsystems that access, move and store network information. Agere’s integrated solutions form the building blocks for advanced wired, wireless and optical communications networks. The company is a leader in providing integrated Wi-Fi solutions for PC manufacturers, as well as in storage solutions with its read-channel chips, preamplifiers and system-on-a-chip solutions. More information about Agere Systems is available from its Web site at http://www.agere.com.