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Updated from 5:27 p.m. EDT

Acquicor Technology


, a company founded by Steve Wozniak and other former


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executives, agreed to acquire privately held Jazz Semiconductor, a Newport Beach, Calif., semiconductor-wafer foundry.

The all-cash transaction is valued at $260 million, and the deal should close in the first quarter of 2007.

Acquicor was started by Gil Amelio, the former chairman and CEO of Apple, Wozniak, a co-founder of Apple, and Ellen Hancock, who served as chairman and CEO of Exodus Communications. Hancock also spent time at Apple, serving as the company's chief technology officer.

The company

went public in March with the purpose of acquiring one or more operating businesses in the technology, multimedia and networking sectors.

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Acquicor raised gross proceeds of $172.5 million through its IPO, and most of that amount was placed in a trust account pending the completion of a business combination.

Jazz Semiconductor was formed in 2002 as a joint venture between


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and private equity firm

Carlyle Group

. Conexant, which owns 42% of Jazz, said it expects to receive about $100 million in cash proceeds from the Acquicor purchase.

RF Micro Devices


also owns a stake in Jazz. The maker of radio frequency components said it will receive $24 million to $27 million from the deal.

RFMD expects to take second-quarter charge to reduce the carrying value of its original investment in Jazz. Prior to the Acquicor transaction, RFMD had valued its investment in Jazz at approximately $60 million.