Magnum Semiconductor Agrees to Acquire LSI Consumer Products Business

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LSI Corporation and Magnum Semiconductor, Inc. enters an agreement under which Magnum will acquire the LSI consumer products business in a transaction to be funded by private equity investment. The definitive agreement is the result of an ongoing strategic review within LSI of its business portfolio following its merger with Agere Systems on April 2, 2007.

LSI Corporation and Magnum Semiconductor, Inc. announced  that they have entered into a definitive agreement under which Magnum will acquire the LSI consumer products business in a transaction to be funded by private equity investment. The combination of each company's consumer products portfolio is expected to allow Magnum to strengthen its position as a leading provider of chips, software and platforms for consumer entertainment systems. The sale of the consumer products business will enable LSI to focus its investments on its businesses in the storage, networking and mobility market segments. The transaction is expected to close in the third quarter and is not subject to regulatory approval. Financial terms are not being disclosed.

 

With this transaction, Magnum Semiconductor strengthens the company's existing DVD, digital TV and digital entertainment center solutions while also adding MPEG-2 and H.264 high-definition media processing and low-power 3D graphics products to its portfolio. The definitive agreement is the result of an ongoing strategic review within LSI of its business portfolio following its merger with Agere Systems on April 2, 2007. Under the terms of the agreement, Magnum will purchase the LSI DoMiNo®, Domino[X]TM and ZevioTM architectures, products and related IP of the LSI consumer products business. Additionally, Magnum will offer employment to a significant number of LSI employees associated with the business. The two companies will also work together to seamlessly transition the business to continue to offer customers the highest quality products, services and support.