TranSwitch completes Mysticom acquisition
February 1, 2006 Shelton, CT -- TranSwitch, a provider of high-speed semiconductor platforms for voice, data, and video communications, has completed its acquisition of Mysticom Ltd., a privately-held developer of high-performance multi-Gigabit Ethernet transceivers for the communications industry.
According to a press release, TranSwitch acquired the Israel-based Mysticom through the issuance of approximately $5 million of TranSwitch Common Stock. Upon the satisfactory achievement of stipulated revenue objectives and a positive operating cash flow over the next 12 months, TranSwitch will pay up to an additional $10 million in the form of TranSwitch stock or cash, at its option. Mysticom will operate as a wholly owned subsidiary of TranSwitch.
"The acquisition of Mysticom should allow us to integrate high-speed SerDes and PHY capabilities in TranSwitch's next generation of products as the market for 10-Gbit/sec ports on telecommunications and data communications equipment grows," comments Dr. Santanu Das, president and CEO of TranSwitch. "This will enhance our position in the carrier-class Ethernet market."
Mysticom, a fabless semiconductor company, designs and develops 10-Gigabit Ethernet (GbE) transceivers for a variety of applications, including data center, enterprise, server, storage, and high-definition video. The company says its line of 10-GbE transceivers delivers superior interconnect performance over a variety of cable media, and is fully compliant with CX4, LX4, and XAUI standards. Mysticom also markets intellectual property (IP) cores for Fast Ethernet (10/100) and GbE PHY applications.
SVB Alliant, the investment banking subsidiary of SVB Financial Group, exclusively represented Mysticom in the transaction.