Agere Systems announced on Monday that it will sell its field programmable system chip (FPGA) product portfolio and all related software design tools to Lattice Semiconductor for $250 million in cash.
Additionally, about 100 Agere employees will join Hillsboro, Oregon-based Lattice.
"This acquisition provides Lattice with a unique opportunity to accelerate our previously announced intention to enter the FPGA market," stated Steven A. Laub, Lattices president, in a prepared statement.
In addition to the purchase of FPGA chip technology, which is used in communications systems such as network routers and switches, Lattice said it was interested in Ageres field programmable system chip (FPSC), which combines FPGA logic with embedded chip cores dedicated to the implementation of advanced communication protocols and high-speed input/output functions.
"We are particularly attracted to the groundbreaking FPSC products which have strong design-in activity within key communication equipment OEM customers. Currently unmatched in our industry, this FPSC portfolio will immediately provide Lattice an important means of differentiation in the FPGA market," said Laub.
Lattice will also acquire specific intellectual property and patents related to Ageres FPGA business. Agere will continue to have access to its ORCA FPGA technology for incorporation into its "system-on-a-chip" integrated circuits.
Pending regulatory approval the deal will close in the first quarter of 2002.