MILPITAS, Calif. -- LSI Logic Corp. here today announced it is acquiring DataPath Systems Inc., a broadband-communications chip company in San Jose for approximately $420 million in stock.
DataPath Systems supplies standard products in fast-growing areas such as ADSL (Asynchronous Digital Subscriber Line), cable modems and high-performance tranceivers.
"The DataPath acquisition will immediately bolster LSI Logic's portfolio of communications standard products as well as its library of communications-specific building blocks to enable the integration of single-chip CMOS solutions for customers in the global communications market," said John Daane, executive vice president of LSI Logic's Communications Products Group.
The acquisition, expected to close during the third quarter, is a purchase accounting transaction and is subject to regulatory review. It is expected to become accretive to LSI Logic's earnings before goodwill amortization during 2001.
"The acquisition of DataPath is consistent with LSI Logic's strategy of amassing standard products, intellectual property and engineering talent focused on our target communications markets," added Daane. DataPath has approximately 115 employees.
DataPath's president Hemant Thapar, said, "The DataPath team is looking forward to bringing to LSI Logic our expertise in the design of high-performance analog and mixed-signal devices for high-speed Internet and communications applications. LSI Logic is clearly focused on extending its leadership position in broadband and other rapidly growing communications markets."
In a separate announcement today, LSI Logic announced it has licensed the discrete multitone (DMT) technology from Alcatel SA's Carrier Data Division. By combining DataPath's analog frontend (AFE) and the DMT engine, LSI said it now offers a complete ADSL solution.