Agilent's semiconductor unit becomes "Avago"
Agilent Technologies has completed the sell-off of its semiconductor business, which now begins operations as Avago Technologies.
In completing the $2.66 billion deal, equity firms Kohlberg Kravis Roberts and Silver Lake Partners have taken control of the world's largest privately-held semiconductor company.
Dick Chang, who was the unit's CEO under the old Agilent regime, retains his position at the renamed company. Chang said that Avago would now look to capitalize on its new independence to drive profitability.
In among the company's huge operation, which features 6500 employees, 5500 products, and which raked in a total revenue of $1.8 billion in fiscal 2005, Avago covers three key areas of the compound semiconductor business.
The company holds a very strong presence in chip manufacturing for both fiber-optic communications and LED applications, while it also has a 6-inch GaAs fabrication facility in Fort Collins, CO, where it makes E-PHEMT power amplifiers for cell-phones.
Avago also makes optical mouse sensors, which are based on both laser diode and LED technology.
Agilent has also now completed the sale of its holding in the high-brightness (HB) LED chip manufacturer Lumileds Lighting, which becomes wholly owned by Philips.
And as if to emphasize its strategy to steer away from semiconductors and focus on test and measurement, Agilent has just acquired Molecular Imaging, a Tempe, AZ, firm specializing in atomic force microscopes (AFMs) for applications in nanotechnology.
Note: For those of you wondering about the correct way to pronounce "Avago", the emphasis should be placed on the second syllable.