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Mergers & acquisitions

LSI Logic to Purchase C-Cube

MILPITAS, Calif. -- LSI Logic Corporation (NYSE: LSI) and C-Cube Microsystems Inc. (Nasdaq: CUBE) today announced a definitive merger agreement in which LSI Logic has agreed to acquire C-Cube in a stock-for-stock transaction valued at approximately $878 million. In the transaction, each outstanding share of C-Cube common stock is to be exchanged for 0.79 of a share of LSI Logic common stock. LSI Logic anticipates completing the transaction in its second quarter ending June 30, and expects the transaction to be accretive to the company's earnings before goodwill amortization (EBG) in 2001.

"The acquisition of C-Cube will enhance LSI Logic's technology strengths in designing and manufacturing complete solutions for customers in rapidly growing communications and broadband entertainment markets," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. "Both companies bring complementary technologies and market channels to the broadband entertainment market. The synergy of these two technology leaders is consistent with our business strategy of capitalizing on the convergence of worldwide communications and broadband entertainment."

http://www.lsilogic.com
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