Legerity, a supplier of integrated circuits for voice network access and voice-over-broadband applications, is to acquire Agere Systems’ analog line card IC 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 ICs used in telephone network equipment.
As part of the transaction, approximately 50 employees from 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.
Through a transitional supply agreement, Agere will supply chips for Legerity through early 2003. Agere currently manufactures the majority of the devices at its Reading, PA facility.
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.