Conexant Systems Inc. said it signed an agreement to merge with GlobespanVirata Inc., creating a combined chip company valued at $2.8 billion.
GlobespanVirata shareholders will receive 1.198 shares of Conexant common stock. Conexant shareholders will own 62.75% of the merged company.
Conexant builds chip sets for both cable and digital-subscriber-line modems, plus other home-networking gear. GlobespanVirata builds chips for DSL and wireless technologies.
Armando Geday, president and CEO of GlobespanVirata, will become CEO of the combined company. Dwight Decker, Conexant's chairman, will assume the role of chairman. Conexant president Matt Rhodes will hold the same title at the new company.