LSI Logic has bought Agere Systems in an equity deal worth approximately $4bn.
The combined semiconductor company will have revenues of $3.5bn for the 12 months ended September 30, 2006.
This has been a year of big changes for LSI Logic which has re-focused its whole business model away from its traditional 
Asic products.
In the last year it has sold a US fab to On Semiconductor in a move interpreted as a change to a fabless chip business model. It has also sold non-core technology such as its ZSP digital signal processor IP.
Both firms have significant presence in the chip markets for communications and storage systems.
While LSI Logic also has system-on-chip devices aimed at consumer applications, the acquisition of Agree will give 
it new wireless networking chipset technology.
According to Abhi Talwalkar, LSI Logic president and CEO: “By joining forces, we expect the combined scale to enable us to extend our franchises in our market segments, realise significant synergies and better serve the needs of our collective customers, shareholders and employees.”
LSI and Agere shareholders will own approximately 52% and 48%, respectively, of the combined company.