Analog Devices Inc. announced Monday it will pay about $100 million in a stock deal to acquire Chiplogic Inc., a developer of ICs and software for broad band access and network protocol processing.
In addition, ADI said has completed a previously unannounced acquisition of Thomas Neuroth AG, a Vienna-based developer of solutions for the symmetric DSL (SHDSL) market. The cash purchase price was not disclosed.
Both acquisitions are expected to boost ADI's already leading position in the DSL market, said Will Strauss, an analyst with Forward Concepts Co., Tempe, Ariz. ADI is current the leading merchant supplier to the ADSL market for both customer premise and infrastructure equipment, he said.
"(ADI) is doing this to move up the food chain, the protocol stack," he said. "They'll now be able to address higher levels than just the physical layers they've been working at presently."
Established in August 1997, Chiplogic has headquarters in Santa Clara, Calif., and a development center in India. Norwood, Mass.-based ADI plans to keep both facilities in operation, said Russ Johnsen, vice president and general manager of ADI's Communications Products Division.
"Analog Devices is committed to providing a full suite of hardware and software products for seamless broadband access at a wide variety of data rates, including easy integration with voice and video processing," Johnsen said. "With the addition of Chiplogic, ADI has the ingredients to offer a world-class array of end-to-end solutions for broadband voice and video access."
Chiplogic utilizes VLIW and DSP based processing to create such products as ATM technologies, multi-service infrastructure platforms, and signaling technologies used extensive in ADSL applications.
ADI plans to acquire Chiplogic for about 1.35 million shares of stock, plus assumption of outstanding Chiplogic employee stock options, exercisable for about 300,000 additional shares. The acquisition is expected to close within 30 days.