Semiconductor foundry service provider Jazz Semiconductor has entered into a merger agreement with Acquicor Technology Inc., an equity firm recently formed by former Apple Computer executives. Under the deal, Jazz will become a wholly owned subsidiary of Acquicor in an all-cash transaction valued at $260 million, subject to adjustment based on Jazz’s working capital and for possible future contingent payments. Completion of the merger is expected to occur in the first quarter of 2007. The company is expected to continue to operate as Jazz Semiconductor

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Three former executives from Apple, Gilbert Amelio, Ellen Hancock and Steve Wozniak, formed Acquicor to acquire high-technology companies. Wozniak co-founded Apple with Steve Jobs. Amelio was chairman and chief executive officer of Apple Computer and former chairman and chief executive officer of National Semiconductor as well. Amelio also served as the president of Rockwell Communications Systems, a semiconductor manufacturing division of Rockwell International Corp., which was later spun off as Conexant Systems, Inc. In that capacity, Amelio was responsible for operation of the manufacturing facility that is now operated by Jazz. Likewise, Hancock served as chairman and CEO of Exodus Communications, an Internet system and network management company. Prior to that she was a chief technology officer at Apple Computer and chief operating officer of National Semiconductor.

Acquicor has indicated that the merged company will continue to focus on the specialty foundry business model that has enabled Jazz Semiconductor’s success to date. Founded in 2002, Jazz Semiconductor offers specialty CMOS process technologies for the manufacture of highly integrated analog and mixed-signal ICs.

Following the merger, Shu Li will continue as chief executive officer of Jazz Semiconductor and Amelio will continue as chief executive officer of Acquicor.