Agere is a partner of Xetel's (see next post)
Lucent Technologies to acquire Agere, a leader in programmable network processor technology for packet-based networks
FOR RELEASE THURSDAY JANUARY 20, 2000
ALLENTOWN, Pa. - Lucent Technologies (NYSE: LU) Microelectronics Group, the world leader in communications semiconductors, today announced an agreement to acquire Agere, an Austin, Texas-based leader in programmable network processor technology, for about 8 million shares of Lucent common stock. Based on Lucent's closing share price on Wednesday, January 19, the transaction would be worth approximately $415 million.
The acquisition moves Lucent into the fast-growing market for programmable processing chips for packet-based networks. These high-speed chips will enable network equipment manufacturers to add new features and capabilities to their switches and routers while holding down systems costs. According to a 1999 Dataquest report, the programmable communications processor market, which includes network processors, is expected to grow by more than 72 percent a year through 2003 on a compound basis.
"Network equipment manufacturers want speed, flexibility and cost efficiency when designing products for next generation networks," said Ed Roberts, vice president and general manager of the Networks and Communications unit of Lucent's Microelectronics Group. "Agere's innovative technology allows customers to move packets 25 times faster than current programmable processor technology," said Roberts. This ability to move packets at "wire speed" means that packets don't have to be slowed down to route them through the network.
Roberts also noted that Agere's design allows packet, frame and cell-based network equipment to be programmed to flexibly perform multiple functions at increasingly higher speeds. In addition, equipment already deployed in the network can be programmed to add new capabilities as needed, saving time to market as well as development cost.
"We expect Lucent and Agere's combined expertise in network processors will enable us to deliver these next-generation capabilities this year," Roberts said. |
