Infineon to Acquire LSI's Mobility Business for $450 Million

LSI will sell its mobility products business to Infineon Technologies for $450 million in cash, plus a performance-based payment of up to $50 million payable in the first quarter of 2009. The division, which originally belonged to Agere Systems, designs semiconductors and software for cellular telephone handsets and complete chip-level solutions for satellite digital audio radio applications. It has about 700 employees.

“This move demonstrates our commitment to maintain and grow our leadership in the wireless market. The business acquired from LSI will significantly strengthen our position at important mobile phone makers and will add highly qualified experts to the Infineon team,” said Dr. Wolfgang Ziebart, President and CEO of Infineon Technologies.

LSI said the sale is the result of its strategic review following its merger with Agere Systems on April 2, 2007. LSI now plans to pursue growth opportunities for its storage systems and storage and networking semiconductor businesses. Proceeds from the sale will be used for a stock repurchase program.

“This move demonstrates our commitment to maintain and grow our leadership in the wireless market. The business acquired from LSI will significantly strengthen our position at important mobile phone makers and will add highly qualified experts to the Infineon team,” said Dr. Wolfgang Ziebart, President and CEO of Infineon Technologies.

http://www.infineon.com

http://www.lsi.com

• In June 2007, Infineon Technologies agreed to acquire Texas Instruments’ DSL Customer Premises Equipment (CPE) business. The transaction is expected to close in the summer of 2007. Financial terms were not disclosed.
• In June 2007, LSI agreed to sell its consumer products business to Magnum Semiconductor for an undisclosed amount. The deal includes the LSI DoMiNo, Domino[X] and Zevio architectures, products and related intellectual property of the LSI consumer products business.
• On 04-Dec-2006, LSI Logic first announced plans to acquire Agere Systems in an all-stock transaction with an equity value of approximately $4.0 billion. Under the deal, LSI and Agere shareholders will own approximately 52% and 48%, respectively, of the combined company.
• Agere Systems was formerly the Microelectronics Group of Lucent Technologies. Agere was spun-off from Lucent in 2002.