KANATA, Ontario--Tundra Semiconductor Corp. here today announced plans to acquire Quadic Systems Inc., an analog chip developer and design-layout specialist based in South Portland, Maine. Tundra said the purchase will help it reduce development time for high-speed interconnect technology in communications-chip applications.
Under an acquisition agreement, Tundra will buy Quadic Systems for stock and cash, valued at up to $45 million. About 90% of the acquisition will be made with Tundra stock and 10% with cash. Half of the amount will be paid at the closing of the transaction, and the rest paid over a three-year period, said the Canadian chip company.
"Tundra and Quadic Systems make an excellent fit," said Adam Chowaniec, president and chief executive officer of Tundra. "Over the past year, Quadic Systems has provided back-end expertise in the design of Tundra PowerPro and Tsi920, and we have developed a very close and successful relationship that has enhanced our COT (customer-owned tooling) program."
"Acquiring Quadic Systems will provide Tundra with the highly skilled people we need to keep our system interconnect strategy aggressively moving forward," added the CEO. "This includes designing devices based on the high-speed RapidIO InterconnectArchitecture. Tundra, along with industry giants Motorola, Nortel Networks, Cisco Systems, and Lucent Technologies, is a founding member of the RapidIO Trade Association. Acquiring Quadic is a key step in the Tundra strategy to work more closely with members of the association as we further our development of RapidIO-based devices."
Quadic Systems was founded in September 1984 and has 37 employees. Since its inception, Quadic Systems has supplied customers with over 200 designs, according to the company.
" Our contribution will enable Tundra to define new and more significant products for its customers," said David Ferris, president of Quadic Systems. Tundra's system interconnect technology is used to connect components and subsystems in embedded systems. It includes chips on a board and boards on a backplane.
The acquisition is expected by the middle of September.