Lucent Technologies (NYSE: LU) announced that its Microelectronics spinoff has selected Agere Systems as its name. The company, which is the former Microelectronics Group of Lucent Technologies, comprises of two major divisions -- integrated circuits and optoelectronic components.
Lucent announced its intention on July 20 to spin off its Microelectronics Group. It plans an initial public offering for up to 20 percent of the new company and intends to spin off the remaining shares in a tax-free distribution. The IPO should take place by the end of the first calendar quarter of 2001, and the spin off should be completed by the summer of 2001.
The name �Agere� (pronounced a-GEAR) has its roots in the Latin verb �ago,� which means "to lead, to drive, to act." According to a company press release, It is consistent with the aspirations of the new company and reflects feedback from employees, customers, and industry analysts around the world.
Agere is not a new name to the company. Earlier this year, Lucent acquired an Austin, Texas-based company by that name to add its expertise in programmable network processors to the Microelectronics Group.
According to John Dickson, the president and CEO-designate for Agere Systems, "We added 'Systems' to the name to reflect our goal of providing communications systems solutions to our customers.�
Agere Systems' Integrated Circuits division designs, develops, and manufactures communications products for wireless, access, networking, and computing applications. Its Optoelectronics division designs, develops and manufactures optoelectronics components for long- and short-haul communications networks.