EZchip Completes Acquisition of Tilera
EZchip Semiconductor Ltd has announced that it has completed the acquisition of Tilera Corporation, a privately-held US-based company that develops high-performance multi-core processors, intelligent network interface cards and white-box appliances for data-center networking equipment. The aggregate purchase price paid upon completion of the acquisition was $50 million in cash, subject to certain working capital and other adjustments. Under the terms of the agreement, EZchip may pay Tilera's stockholders up to an additional $80 million subject to the attainment of certain future performance milestones.
The acquisition is intended to provide significant new growth opportunities for EZchip by accelerating the company's expansion into new markets, diversifying its customer base and product lines and doubling its target Total Available Market (TAM).
"The initial indications coming from customers of EZchip and Tilera affirm the companies' belief in the synergies and business opportunities that are expected to be created through the combination of the two companies. Our strategic goal with this acquisition is to leverage technology and expertise from both EZchip and Tilera to build new powerful processors, and deliver some of the highest throughput and lowest power processing solutions to large growth markets represented by data center and cloud networks," said Eli Fruchter, CEO of EZchip Semiconductor. "We believe the new processors will not only have the highest core count at the lowest power utilizing Tilera's advanced technologies for integrating core-count and power efficiency, but also the highest throughput through the integration of EZchip's technologies for accelerating network and packet processing".
