PLX to acquire Oxford Semiconductor

PLX Technology Inc. has signed a definitive agreement to acquire all of the outstanding shares of capital stock of Oxford Semiconductor Inc., a privately held fabless provider of silicon and software.

"Through this acquisition, PLX will have a leadership position in two of the fastest-growing interconnect chip markets—PCIe-based systems and external storage," said Ralph Schmitt, president and CEO of PLX. "Major synergies include common interconnect technologies and design flows, sales, marketing and support systems, and supply chains."

"We see a convergence of PLX's system interconnect business and Oxford's storage interconnect business in customers' core technologies and products that will, in the future, need to incorporate technologies from both companies," said Bill Schroeder, CEO of Oxford.

Pursuant to the terms of the agreement, PLX Technology will acquire all of the outstanding shares of capital stock of Oxford Semiconductor in exchange for 5,600,000 shares of common stock of PLX, and a promissory note in the aggregate principal amount of $14,200,000 that will be satisfied by either the issuance of an additional 3,400,000 shares of common stock of PLX upon approval of the PLX stockholders, or the repayment of the principal amount of the note by June 30, 2009, if such stockholder approval is not obtained. The acquisition has been approved by a special committee of PLX's board of directors, and by the board of directors and stockholders of Oxford. The acquisition, which is subject to satisfaction of certain closing conditions, is anticipated to be completed in early January 2009. PLX intends to hold a special meeting of stockholders to vote upon the issuance of PLX shares in satisfaction of the note.