Lattice Semiconductor is to acquire the FPGA business of Agere Systems for $250 million in cash. The acquisition will be financed through cash on hand.
Agere and Lattice anticipate closing the transaction in the first calendar quarter of 2002 subject to regulatory approval and other customary closing conditions. The transaction is expected to be accretive to Lattice’s calendar year 2002 proforma earnings before goodwill.
The transaction includes Agere’s general-purpose ORCA FPGA product portfolio, its field programmable system chip (FPSC) product portfolio and all related software design tools.
FPSCs are advanced system oriented products which combine generic FPGA logic with embedded cores dedicated to the implementation of advanced communication protocols and high-speed input/output (I/O) functions. As part of the transaction, approximately 100 Agere product development, marketing and technical sales employees will join Lattice.
Lattice will also acquire certain intellectual property cores and patents that are unique to Agere’s FPGA business. Additionally, the parties will enter into a cross-license agreement whereby Lattice will receive rights to Agere patents and certain intellectual property for use in current and future FPGA and FPSC products and Agere will continue to have access to the ORCA FPGA technology for incorporation into its ‘system-on-a-chip’ integrated circuits.