CAMARILLO, Calif. -- Vitesse Semiconductor Corp. here has agreed to acquire network processor startup Sitera Inc. for $750 million in common stock.
Sitera, a three-and-a-half-year-old company based in San Jose, released the first Rambus-enabled network processor earlier this month (see April 3 story). It is aimed at Internet switch/routers for traffic management, traffic classification, policy enforcement and guaranteed delivery.
"The powerful capabilities of Sitera's network processors extend Vitesse's capabilities from OC-192 down to OC-3 and DS3 and provides significant flexibility to implement emerging services for Intelligent edge switches and routers, ISP/ASP service platforms and core optical routers," said Lou Tomasetta, president and CEO of Vitesse. "Sitera has assembled a very talented team, bringing additional networking and development expertise with innovative products to Vitesse, insuring our dominance in the emerging network processor markets," he added.
The transaction is expected to be completed in the quarter ending June 30. Vitesse expects the transaction to be accounted for as a pooling, but said that pooling is not a condition to closing.
For Vitesse, this is the second acquisition in a month. Earlier it purchased Orologic Inc., a LAN/WAN-chip supplier for switch-fabric applications, for $450 million (see March 27 story)