RED BANK, N.J. Globespan Inc. snapped up one of the few remaining network processor specialists Monday (April 24), when it offered approximately $200 million in stock for T.sqware Inc., a Santa Clara, Calif. specialist in line aggregation, that has French roots from Temic Semiconductor founders.
By snaring T.sqware two months after acquiring Ficon Technology Inc., a developer of TCP/IP and ATM protocol stacks, Globespan is expanding from Digital Subscriber Line expertise to a more general market of aggregating DSL and leased lines for backbone Internet Protocol traffic.
T.sqware competes in the same general area of aggregation and control in which Virata Corp. (the former ATM Ltd.) and Basis Communications Inc. play. Virata has gone public, and has pursued small software acquisitions in its own right, while Basis was acquired last month by Intel Corp.
While T.sqware aggregates serial services at all the line rates used by DSL, its processors also extend to Sonet OC-12 (622 Mbits/sec) and OC-48 (2.5 Gbits/sec) speeds, which puts Globespan in optical backbone aggregation for the first time.
Globespan is the semiconductor spinoff resulting from the split of AT&T Paradyne. While Paradyne Corp. (Boca Raton, Fla.) has been pursuing a healthy business in frame relay and DSL access systems, Wall Street has been kinder in its valuation of Globespan, the portion of the company that grabbed all semiconductor and intellectual-property rights. In the past two years, Globespan has expanded from its original base of 2B1Q Symmetric DSL chip designs, to cover the full gamut of DSL algorithms.
Globespan plans to retain all 75 employees of T.sqware, including 60 engineers.