NetLogic Microsystems to acquire Aeluros
OCTOBER 25, 2007 -- The company expects to pay $57 million in cash upon the transaction's close.
OCTOBER 25, 2007 -- NetLogic Microsystems Inc. (search for NetLogic) has signed a definitive agreement to acquire Aeluros Inc. (search for Aeluros), a privately held, fabless provider of 10-Gbit/sec interface technologies and semiconductor products. The company expects to pay $57 million in cash upon the transaction's close.
Aeluros products are now being designed into "next-generation systems at leading networking OEMs and optical module manufacturers," according to the press release announcing the deal. The company most recently has been active in developing PHYs with integrated electronic dispersion compensation for 10GBase-LRM applications using SFP+ transceivers.
NetLogic Microsystems expects the acquisition to expand its position in knowledge-based processors by delivering devices that incorporate interface technology from Aeluros.
Aeluros is headquartered in Mountain View, CA. It has particular expertise in developing low-power 10-Gbit/sec interface technology in mainstream CMOS processes that NetLogic will use to form a center of excellence in this area.
According to Stefanos Sidiropoulos, CEO of Aeluros, "The combination will enable us to deliver best-in-class interface technology for next-generation knowledge-based processors as well as to enhance the market success of Aeluros's 10GE physical layer products and our ability to serve our customers."
As noted previously, NetLogic expects to pay $57 million in cash upon the closing of the transaction in exchange for all of the outstanding equity securities of Aeluros. NetLogic Microsystems will reserve approximately 115,000 shares of common stock for future issuance upon the exercise of unvested employee stock options of Aeluros that will be assumed by NetLogic Microsystems and will be subject to continued employment vesting requirements. In addition, under the terms of the definitive agreement, NetLogic Microsystems may pay up to an additional $20 million upon the attainment of performance milestones for the acquired business. A portion of the consideration payable to the stockholders of Aeluros will be placed into escrow pursuant to the terms of the definitive agreement.
The acquisition has been approved by both companies' board of directors and is subject to customary closing conditions. It is expected to close within the next 10 days.
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