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Memory/Storage??

Maxim acquires Vitesse's storage products biz

Posted: 28 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Vitesse's business? storage products? Maxim products?

Maxim Integrated Products Inc. has entered into a definitive agreement to purchase the storage products business of Vitesse Semiconductor Corp. for $63 million in cash. Maxim will pay an additional $12 million in cash upon the achievement of certain commercial milestones through the end of Vitesse's 2008 fiscal year on September 30, 2008.

Under the agreement, Maxim will acquire substantially all of the assets of this business subject to customary closing conditions, including obtaining all necessary governmental approvals and clearances. The transaction is expected to close in Q4 2007.

The acquisition brings Vitesse's serial ATA, serial attached SCSI expander products, enclosure management products and baseboard management products into Maxim's product portfolio. The served available market for these products is projected to be in excess of $300 million in Maxim's 2010 fiscal year and the company expects to maintain its position as a significant supplier.

Maxim intends to offer employment to more than 50 of Vitesse's trained engineers and technical experts in connection with the acquisition. The company expects the acquired business to be accretive to earnings in calendar 2008 and beyond as a result of Maxim's economies of scale and lower cost structure.

"In addition to their high-performance silicon content, these products have a significant software and firmware component critical to the end customer," said Tunc Doluca, Maxim president and CEO. "The process of amassing a design and firmware team of this size and talent would have been difficult and time consuming for Maxim. Vitesse's current development status, engineering credibility with customers and design expertise in highly integrated SoCs, storage system and firmware, strengthened by Maxim's financial stability, marketing and manufacturing strength, will ensure rapid revenue growth for us."




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