SANTA CLARA, Calif.--Virata Corp. here today announced plans to acquire Excess Bandwidth Corp., a privately held company developing advanced algorithms for high-bandwidth communications applications, including communications ICs.
Under an acquisition agreement, Virata will buy the two-year-old Cupertino, Calif., company for 6.3 million shares of stock valued at $315 million.
The acquisition is expected to provide Virata with symmetric digital subscriber line (DSL) physical layer capabilities for its communications processors. Virata said it will become the only supplier of complete solutions for asymmetric and symmetric DSL systems.
"Excess Bandwidth's products will enable us to compete in the symmetrical market, which is expected to grow very rapidly," said Charles Cotton, chief executive officer of Virata. He claimed that Virata will be positioned as the only supplier the world to offer major building blocks for customer premises or central office DSL equipment, "including communications processors, voice processors, integrated software, and ADSL and symmetric DSL physical layer solutions."