Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Interface

Tundra acquires Silicon Logic Engineering for $14M

Posted: 06 Jun 2006 ?? ?Print Version ?Bookmark and Share

Keywords:acquisition? Tundra Semiconductor? Silicon Logic Engineering?

Tundra Semiconductor Corp. announced that it has acquired Silicon Logic Engineering Inc. (SLE) for $14 million. SLE develops communications and computer chip products for networking and computing customers. Tundra said SLE's resources, proficiency and intellectual property (IP) will strengthen Tundra in the communications and computing markets.

Under the terms of the agreement, the purchase price is $14 million comprised of $10 million cash and $4 million (approximately 259,000) common shares of Tundra. Half of the share consideration will be payable over the next two years depending on certain operational objectives.

"This acquisition fulfills a key element of our strategy: by combining SLE's skills with our existing IP and customer relationships we will expand our product portfolio and broaden the range of applications we can address," said Jim Roche, president and CEO of Tundra. "This also complements our recent acquisition of Alliance SSBU by adding engineering knowledge of computer and communications systems to help us develop a stronger portfolio of PCI Express products."

SLE employees will remain at its Eau Claire facility and SLE will continue to serve its customer base. SLE is a provider of SPI 4.2 cores. SPI 4.2 is a system interconnect standard used by networking and communications companies.

Tundra expects the acquisition to generate revenues through design services and IP licensing. The SLE business is expected to generate revenues in the range of $2 to $2.3 million per quarter, with gross margins of between 35 percent and 40 percent and profit after tax of between 10 percent and 12 percent of revenues.

Article Comments - Tundra acquires Silicon Logic Engine...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top