MUNICH -- In a move to expand its IC portfolio in high-speed optical networks, Infineon Technologies AG today announced plans to acquire privately-held Catamaran Communications Inc. of San Jose for $250 million in stock.
Year-and-a-half-old Catamaran has 50 employees and is focused on OC-768 (40-gigabit-per-second) and OC-192 (10 Gbit/sec.) synchronous digital hierarchy/synchronous optical networks (SDH/SONET) as well as 10-Gbit Ethernet applications. The fabless chip company claims to have design expertise in SDH/SONET, asynchronous transfer mode (ATM), time division multiplexing (TDM), packet over SONET (PoS), and Ethernet.
Munich-based Infineon said Catamaran's product offerings will be combined with its existing lineup to offer a complete line card solution--from the optics to network processor interface. Catamaran's products are targeted at high-growth markets for terabit routers, add drop multiplexers (ADMs), dense wave division multiplexers (DWDMs), and digital cross connects (DCS), said Infineon.
"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 Gbps and beyond," said Ulrich Schumacher, president and CEO of Infineon.
Infineon said the optical network IC market is expected to increased by a 45% compound annual growth rate during the next four years, reaching $16.17 billion by 2004, based on estimates by Cahners In-Stat in Scottsdale, Ariz.
Once the acquisition is completed, Catamaran will become a wholly-owned subsidiary of Infineon. The Munich company said it wants to take this approach of ownership to maintain Catamaran's Silicon Valley start-up culture, while "capitalizing on the synergies with Infineon's existing wide area network (WAN), fiber optic and high-speed communication business units."