PMC-Sierra Completes Acquisition of Storage Semiconductor Business from Avago Technologies
March 01 2006 - 5:00AM
Business Wire
PMC-Sierra, Inc. (Nasdaq:PMCS), a leading provider of broadband
communications and storage semiconductors, today announced the
completion of the acquisition of the storage semiconductor business
from Avago Technologies for $425 million in cash. The final
purchase price is subject to an inventory adjustment. PMC-Sierra
will also incur significant acquisition-related costs, including
one-time charges and ongoing amortization related to the acquired
business. The acquisition of the storage semiconductor business
strengthens PMC-Sierra's position in the storage market and allows
the Company to provide more complete end-to-end enterprise storage
silicon solutions. The acquired business is a technology leader in
Fibre Channel protocol controllers with its Tachyon product line
and is developing next-generation controllers supporting Fibre
Channel and SAS/SATA/iSCSI storage systems as well as other
storage-related products. "With the closing of this acquisition,
PMC-Sierra now has a broad storage semiconductor product line with
more integrated end-to-end solutions for our enterprise storage
customers," said Bob Bailey, chairman and chief executive officer
of PMC-Sierra. "We have acquired a highly skilled team and are
moving quickly to integrate our operating and development efforts
so that we can provide customers with innovative storage solutions
while at the same time improving the overall profitability of the
acquired business." Safe Harbor Statement PMC-Sierra's
forward-looking statements concerning the strengthening of
PMC-Sierra's storage position in the storage market, speed and
success of integration efforts and improvements in profitability of
the acquired business involve risks and uncertainties. Actual
results may differ from projections for varied reasons, including
changes in semiconductor market conditions and demand for storage
semiconductor products; the impact of competitive products and
pricing; technological and product development risks and other risk
factors relating to PMC-Sierra's business detailed in the Company's
Securities and Exchange Commission filings, as well as PMC-Sierra's
ability to integrate personnel, product planning and development,
manufacturing and information systems of the business acquired with
PMC-Sierra's operations, and PMC-Sierra's ability to identify and
benefit from cost synergies in the combined business. PMC-Sierra
does not undertake any obligation to update the forward-looking
statements. About PMC-Sierra PMC-Sierra(TM) is a leading provider
of broadband communications and storage semiconductors for
enterprise, access, metro, storage, wireless infrastructure, laser
printers and customer premises equipment. The company offers
worldwide technical and sales support, including a network of
offices throughout North America, Europe and Asia. The company is
publicly traded on the NASDAQ Stock Market under the PMCS symbol
and is included in the S&P 500 Index. For more information,
visit www.pmc-sierra.com. (C) Copyright PMC-Sierra, Inc. 2006. All
rights reserved. PMC, PMCS, PMC-Sierra, and "Thinking You can Build
On" are trademarks of PMC-Sierra, Inc. All other trademarks are the
property of the respective owners.
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