The Yokneam-based chipmaker says acquisition of the US company doubles its target market.
High-performance network chipmaker EZchip Semiconductor Ltd. (Nasdaq: EZCH; TASE:EZCH) has signed a definitive agreement to acquire Tilera Corporation. The privately-held US company develops high-performance multi-core processors, intelligent network interface cards and white-box appliances for data-center networking equipment.
EZchip said that the acquisition is intended to provide significant new growth opportunities for the Yokne'am-based company by accelerating its expansion into new markets, diversifying its customer base and product lines and doubling its target market.
Under the terms of the agreement, EZchip will pay Tilera's stockholders up to $130 million in cash; of which $50 million is payable at closing and up to an additional $80 million is payable subject to the attainment of certain future performance milestones. The transaction has been approved by the EZchip and Tilera boards of directors and is subject to customary closing conditions. The transaction is expected to close in the third quarter of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2014
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