Continuing to expand beyond its traditional role as SRAM vendor, Cypress Semiconductor Corp. today announced it has acquired Arcus Technology, a privately held developer of semiconductors and intellectual property for wide area networking (WAN) applications.
Cypress, San Jose, said it hopes the acquisition will provide further penetration into rapidly growing communications markets being driven by the explosion of the Internet.
Currently, about two-thirds of Cypress' chip sales are into data communications and telecommunications end markets. In the recent past, the company was heavily focused on PC-related end markets, and sales of SRAM and non-volatile memories accounted for half or more of Cypress' revenue.
Recent acquisitions of IC Works Inc. and Anchor Chips Inc., as well as a renewed focus on programmable logic technologies, has given the historically commodity-oriented company an application-specific focus. Its product lines now encompass devices for RF and high-end network peripherals.
The acquisition of Arcus-a $20 million cash and stock deal-is expected to compliment Cypress' chip-level capabilities in high-speed physical layer technology, PLLs, and specialty memory high-growth, adding high-growth, high-margin T1/T3 access protocols, SONET, and Dense Wave Division Multiplexing (DWDM).
Cypress will also gain approximately 70 design engineers.
Arcus, based in Fremont, California, and Bangalore, India, develops a range of intellectual property, product designs, and packaged devices for communications markets, providing ASICs for WDM, Internet protocol over SONET, framers, mappers, PDH multiplexers, and switching technology. Its customer base includes Northern Telecom, Lucent Technologies, Tellabs, among others.