May 5, 2006 Santa Clara, CA -- PMC-Sierra has completed the acquisition of Passave, a developer of system-on-chip (SoC) semiconductor platforms for the FTTH access market.

According to a press release, in accordance with the terms of the transaction as announced on April 4, 2006, PMC-Sierra has acquired all of the outstanding shares of Passave in a stock-for-stock transaction valued at approximately $300 million. PMC-Sierra expects to incur normal acquisition-related costs in connection with the transaction, including one-time charges and ongoing amortization related to the acquired business.

Passave's semiconductor platforms enable service providers to offer triple play services (at up to 1 Gbit/sec over passive optical networking (PON) equipment. The company's product line includes SoCs for central office optical line terminals (OLTs) as well as for optical network terminals (ONTs) and optical network units (ONUs) for residential termination equipment.