Infineon Technologies AG has agreed pay $250 million in stock to buy Catamaran Communications Inc., San Jose, in a move designed to widen its offerings in fiber optics networks.
Specifically, Catamaran will bring SDH and SONET ICS for 10 Gbit/s and 40 Gbit/s networks as well as other ICs to Infineon's fiber optics fold.
``Combining our communications expertise with that of Catamaran will give us a competitive advantage in the fast-growing optical networking market and a leading position in the high speed line card segment at speeds of 40 Gbit/s and beyond,'' said UlrichSchumacher, Infineon's president and chief executive, in a released statement.
In the rapidly-growing fiber optics IC arena, as OEMs increasingly turn to third parties for their IC solutions, the competition is heating up. Heavy hitters currently include Agere, AMCC, Broadcom, Conexant, and PMC-Sierra.
Founded in November 1999 by Venkat Vankaualapati, chief technology officer, Catamaran Communications is a Silicon Valley based fabless chip company with 50 employees. The company's products are targeted at terabit routers, add drop multiplexers (ADMs), dense wave division multiplexers (DWDMs), and digital cross connects (DCS).
Catamaran's investors include Telesoft Partners and Redwood Ventures.
The optical network IC market is forecasted to grow at an overall CAGR of 45% during the next two to three years. According to Cahners In-Stat group, the market will be worth $16.17 billion by 2004.