BURNABY, British Columbia--PMC-Sierra Inc. today announced an agreement to acquire complete ownership of Datum Telegraphic, a privately held supplier of digital signal processing-based power amplification products for wireless infrastructure applications.
PMC-Sierra currently holds an 8% stake in Vancouver-based Datum, and now it plans to purchase the remaining 92% of the startup for stock valued at nearly $125 million.
Five-year-old Datum has developed what PMC-Sierra says is breakthrough base transceiver station transmitter technology for third-generation (3G) wireless infrastructure systems. PMC-Sierra said it plans to use Datum and its 30 employees as the "nucleus" for expansion into the wireless infrastructure market.
"Moving into the wireless infrastructure is the next logical step for PMC-Sierra," said Bo Bailey, chairman and CEO of PMC-Sierra. "The addition of the Datum Telegraphic team will significantly accelerate our 3G data wireless strategy with highly optimized chip set architectures for next-generation wireless equipment.
"Broadband wireless is the next technological discontinuity to change the Internet infrastructure," he added. "Our telecom system expertise combined with Datum's innovative DSP-based power amplifier linearization technology creates an exciting synergy."
PMC-Sierra said Datum's technology features a new class of DSP circuits, which provide lower system costs by allowing traffic for all major digital wireless standards to be transmitted in a single digitally controlled power amplifier architecture. Normally, base transceiver stations require multiple amplifiers per system, said the company.
Datum has been collaborating with PMC-Sierra and several major wireless infrastructure equipment manufacturers to implement and test its patented power amplifier linearization technology.
PMC-Sierra said the stock transaction will be accounted for as a purchase and is expected to close in the third quarter.