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Lucent acquires Agere
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January 20, 2000: 11:54 a.m. ET
Telecom gear maker pays $415M stock for high-speed chip developer
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NEW YORK (CNNfn) - Lucent Technologies agreed Thursday to acquire Agere Inc., a maker of hardware for network programming, for 8 million shares of stock valued at approximately $415 million, based on Lucent's closing price Wednesday.
The move pushes Lucent into the burgeoning business of chip production for networks.
Agere, based in Austin, Texas, has designed and developed high-speed chips since 1998.
Lucent said the acquisition, which should be completed by June 30, will result in a one-time charge against earnings for in-process research and development.
"Network equipment manufacturers want speed, flexibility and cost efficiency when designing products for next generation networks," said Ed Roberts, vice president and general manager for the Networks and Communications arm of Lucent's Microelectronics Group.
Agere also is developing chip technology for networks that will allow information to be processed 25 times faster than current programming.
Networks are groups of computers that provide data and communication for businesses.
"We expect Lucent and Agere's combined expertise in network processors will enable us to deliver these next-generation capabilities this year," Roberts added.
Agere's 90 employees will become part of Lucent's Network and Communications unit, but will remain in Austin.
Lucent is due to report fourth-quarter results later Thursday 
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Lucent
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