Cypress acquires HiBand Semiconductors

Cypress Semiconductor announced that it had signed a definitive agreement to acquire HiBand Semiconductors, a provider of mixed-signal integrated circuits for high-speed communications markets, such as SONET, Ethernet, Fibre Channel, and InfiniBand.

Cypress Semiconductor (NYSE:CY) announced that it had signed a definitive agreement to acquire HiBand Semiconductors, a provider of mixed-signal integrated circuits for high-speed communications markets, such as SONET, Ethernet, Fibre Channel, and InfiniBand. HiBand is currently in the final stages of the development of a 10 Gbps physical layer device for Ethernet applications.

Network system designers have begun implementing serial buses in communications backplanes instead of parallel buses, which impose speed, noise and scalability limitations. Serial communications eliminate cross-talk and enable the use of fiber-optic technology to increase system speed, reduce noise and provide scalability. As designers seek to build systems that move data at speeds higher than 2.5 Gbps, they need to transition from electrical connections to optical technology, which will provide a bridge to 10 Gbps transmission rates and beyond.

The merger is intended to be accounted for by the purchase accounting method. The closing is subject to regulatory approvals and other customary conditions. The merger is expected to close in the first quarter of 2001.

About Cypress:

Cypress Semiconductor provides high-performance integrated circuit solutions, including data communications, telecommunications, computation, consumer products, and industrial control.

About HiBand:

HiBand Semiconductors, Inc. is a provider of mixed-signal semiconductor technology, enabling the realization of higher-speed serial data communications between integrated circuits and systems in networking, computing and communications applications.

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