SANTA CLARA, Calif. -- Virata Corp. here today announced that it will acquire privately-held Inverness Systems Ltd., a communications software company in Marlborough, Mass.
Virata, which supplies communications processors and associated software, will purchase the 850,000 shares of Virata common stock, or about $115 million.
The acquisition will give Virata access to Inverness Systems' ATM, IP and MPLS networking software, which is expected to expand Virata's IP routing capabilities and add to its already broad range of solutions for broadband semiconductors and software.
"We believe this acquisition will enable Virata to quickly bring to market next generation technologies such as voice over DSL, IP routing, and integrated access devices," said Charles Cotton, Virata's CEO. "Virata is the only company to deliver a complete and tightly integrated semiconductor and software solution. With the addition of the Inverness software suite, we intend to further extend this competitive lead and emerge as the leader and de facto standard for IP routing, broadband wireless and DSL applications."
As the leading supplier of ATM, IP and MPLS networking software, Inverness Systems is already supplying most of the leading networking and telecommunications companies, said Jonathan Masel,president and founder of Inverness Systems. Virata has landed major design wins at Ericsson, Netopia, Next Level, Orckit, Siemens, Westell and others.
"The combination of Inverness software and Virata's integrated hardware/software solutions will be a powerful force in the rapidly expanding broadband and networking markets"The combination of Inverness and Virata's capabilities will deliver the most comprehensive software suite available, reducing customers' time to market and significantly lowering customers' cost of development," Masel said.
Inverness currently has 30 employees and maintains offices in Kfar-Saba and Jerusalem, Israel as well as Marlborough. Virata said it will continue those operations to extend its own sales, marketing and support infrastructure and expand engineering centers of excellence for software networking technologies.