MANHASSET, N.Y. Wireless communications company Atheros Communications Inc. has signed a definitive agreement to acquire ZyDAS Technology Corp., a privately held fabless IC design company specializing in high-performance IEEE 802.11 wireless LAN (WLAN) semiconductor and software solutions for PC, mobile and embedded applications.
Atheros (Santa Clara, Calif.) will pay $23 million in cash and stock for ZyDAS, headquartered in Taiwan's Hsinchu Science Park. The transaction is slated to close at the end of June.
"ZyDAS is a proven wireless technology leader with its widely adopted and cost-effective 802.11g and 802.11a/g USB designs," said Craig Barratt, president and chief executive of Atheros, in a statement. "ZyDAS' accomplished technical design team and innovative solutions make them a strong complement to Atheros."
According to IDC, in 2005 the market for WLAN USB solutions was 9.4 million units growing with a CAGR of 148 percent between 2002 and 2005. Acquiring ZyDAS will enable Atheros to further serve this WLAN market segment with end-to-end solutions for clients, access point/routers and gateways.
Over 70 employees of ZyDAS, most of them in R&D, are expected to join Atheros through the acquisition. ZyDAS will become Atheros' new Taiwan Research & Development Center.
Separately, Atheros announced fiscal results for the first quarter of 2006 ended March 31.
The company reported record sales of $61.1 million, up 15 percent from $53.1 million the previous quarter and up 48 percent from $41.2 million in the year-ago first quarter.
GAAP net earnings were $6.8 million or 13 cents per share, down from $13.1 million or 24 cents per share the previous quarter but up from $1.7 million, or 3 cents per share a year ago.
Atheros reported record chipset shipments of 9.6 million the first quarter, up from 7.7 million the previous quarter.