LSI Logic, Agere close merger deal, consider job cuts
By Colleen Taylor, Contributing Writer -- EDN, April 2, 2007
Effective today, LSI Logic Corp. has sealed its $4 billion merger deal with Agere Systems Inc. The newly-merged company will be dubbed LSI Corp., and will continue to trade under the stock symbol "LSI" on the New York Stock Exchange, the company reported.
"Moving forward, our combined scale and resources will strengthen our ability to create value for customers and shareholders and win in our key markets," Abhi Talwalkar, LSI Logic's president and CEO, said today in a statement.
The brand new company may already be examining ways to trim its fat for increased profitability. LSI will reportedly consider job cuts and facilities consolidation as part of an effort to save about $125 million in 2008, according to a Reuters report. "Those are all areas we're looking at and are under consideration," Talwalkar is quoted in press reports.
Reps at LSI could not be reached for immediate comment on the Reuters report.
LSI and Agere first announced in December plans for a definitive merger agreement valued at around $4 billion whereby Agere shareholders would receive 2.16 shares of LSI for each share of Agere they owned. Shareholders of both companies approved the merger at separate meetings held on March 29.
The two companies had combined revenue of $3.5 billion for 2006. The new LSI operates in more than 20 countries, with a workforce of approximately 9,100 employees, including nearly 4,300 engineers. The company owns a patent portfolio consisting of more than 10,000 issued and pending U.S. patents.
