PLX acquires 10GbE leader Teranetics in $36-million deal

Data networking equipment maker PLX Technology Inc. has agreed to pay $35.8 million in stocks and cash for Teranetics Inc., in a deal that would turn PLX into a leader in the 10Gigabit Ethernet (10GbE) market.

PLX said in a statement that it will acquire Teranetics, the world leader in 10GbE over copper physical layer (10GBase-T PHY) technology, in exchange for 7.4 million PLX shares worth $27.6 million based on Friday's closing price and $1.3 million in cash. PLX will also give Teranetics two promissory notes for approximately $6.9 million for up to three years from the close of the deal, which is expected to be in October.

In addition, PLX will take over some $18 million of Teranetics debt, employee bonuses and transaction expenses.

Teranetics owns the world's first and only fully integrated single-chip implementation of single-port and dual-port 10GBase-T PHY silicon.