BURNABY, B.C. -- PMC-Sierra Inc. here announced today that it is acquiring Toucan Technology, a privately held Irish IC design company with 30 employees. PMC-Sierra currently owns 7% of the company and will purchase the remainder for approximately 150,000 PMC-Sierra shares.
The two companies have signed an agreement subject to completion, which will be accounted as a pooling of interests.
Toucan Technology's expertise is in telecommunications and digital signal processing (DSP) design, which expands PMC-Sierra's broadband semiconductor capabilities. Toucan works with major communications networking protocols such as T1/E1, T3/E3, ATM, SONET/SDH, HDSL, and Internet Protocol (IP), as well as embedded software for networking applications. The company's design centers are located in Galway and Dublin.
"PMC-Sierra has already seen the benefits of Toucan's design expertise based on their execution on several telecom circuits as a subcontractor," said Bob Bailey, PMC-Sierra's president and CEO. "Ireland is emerging as a hotbed of communications and engineering talent, so we are very enthusiastic about launching our first European design center there."
For Toucan, PMC-Sierra's customer base -- which includes Alcatel, Cisco, Ericsson, Lucent and Norte -- and its leadership position in the broadband IC market "makes it the ideal match for our telecommunications and DSP design expertise," said Pat Sheehan, Toucan Technology's CEO.
In addition, PMC-Sierra today reported net income of 29 cents per share (diluted) on record revenue of $80.6 million for the fourth quarter of 1999, and a 2-for-1 stock split to take effect on Jan. 31.
Revenue from networking semiconductors grew 78% to $76.3 million in the fourth from $42.8 million in the fourth quarter of 1998. Net revenue for the fiscal year was $262.5 million, 94% of which -- or $245.2 million -- was from networking chips.