HP spin-off Agilent Technologies has sold off its Semiconductor Products Group (SPG) for $2.66bn to private equity firms Kohlberg Kravis Roberts & Co (KKR) and Silver Lake Partners in a deal that creates the largest privately-held independent semiconductor company in the world.
Dick Chang, current president of SPG, who will become president and chief executive officer of the new SPG, said: "This is good news for our customers and employees, as this transaction is a strong endorsement of our business model and financial strength."
KKR and Silver Lake are equal partners in the transaction, which is currently targeted to be completed by the end of Agilent's fiscal year on October 31, 2005, subject to closing conditions, including governmental and regulatory approvals.
SPG is a supplier of advanced semiconductor components, modules and subsystems for consumer and commercial electronics applications. It has approximately 6,600 employees worldwide.
William Sullivan, president and chief executive officer of Agilent, said: " We believe that SPG can best realise its full potential as an independent company. As we refocus Agilent on its core measurement businesses, we are pleased to have found enthusiastic, experienced, and supportive owners for SPG in the alliance of KKR and Silver Lake.
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