Chipmaker PMC-Sierra to acquire rival Wintegra for $240 million
23 Oct 2010
PMC-Sierra, Inc, a minnow chip maker, yesterday said that is acquiring US-Israeli provider of highly integrated network processors for mobile backhaul equipment Wintegra Inc, for $240 million in cash.
Under the terms of the deal, Santa Clara, California-based PMC-Sierra will pay $240 million in cash, less an estimated net cash amount of $27 million on Wintegra's balance sheet at closing.
PMC-Sierra would also pay an additional $60 million if Wintegra achieves certain growth and performance milestones by the end of 2011.
Based in Austin, Texas and Ra'anana in Israel, Wintegra provides access processing semiconductors and software for next generation telecommunication infrastructure solutions.
Wintegra-based solutions are used by many of the leading equipment manufacturers worldwide.
Wintegra, which employs just 165 people at its offices in Israel, Canada and Scotland, is backed by Texas Instruments Inc, three Israeli venture capital firms, Concord Ventures, Magnum Communications Fund, China Development Industrial Bank, and a private European investment group.