Agere Systems has acquired Massana, a privately held developer of Gigabit Ethernet-over-copper physical layer (PHY) devices.
Agere acquired the seven year old Irish company in a stock transaction for approximately 9.1 million shares of Agere Class A common stock, valued at about $26.2 million, based on the closing price of $2.88 for the Agere Class A common stock on August 22, 2003.
Agere expects the acquisition to have minimal impact on its earnings in the current quarter, and for the full fiscal 2004, to be dilutive to earnings by $0.01 to $0.02 per share.
Agere already offers custom solutions for Ethernet applications. The company will now use Massana’s PHY technology to deliver a range of Gigabit Ethernet products, from single to octal ports into network interface cards and LAN-on-motherboard devices for computers and servers, as well as Ethernet switches.
Massana is sampling a Gigabit Ethernet PHY today.
With the acquisition, Agere plans to deliver a next-generation 0.13 micron single PHY product in early 2004 and an octal in mid-2004.
Approximately 45 Massana employees will join Agere.