CAMPBELL, Calif.--PMC-Sierra Inc. today announced plans to buy packet-content processor supplier SwitchOn Networks Inc. for $450 million in stock. The acquisition is intended to give PMC-Sierra additional processing capabilities for next-generation Internet switches, routers, and high-security networks.
"The addition of SwitchOn Network's packet classification expertise is a complementary fit to our broadband communications strategy," said Bob Bailey, chairman and CEO of PMC-Sierra. "It expands our IP Internet protocol knowledge base and adds packet processing capabilities to enhance our ability to address IP-centric network applications."
SwitchOn Networks employs 60 workers in Milpitas, Calif., and 30 in Pune, India. The company said its technology performs complete inspection of packets up to Layer 7, provides policy and content-based networking functions as well as generates statistics for traffic monitoring and metering. These capabilities are used value-added services and billing by network service providers.
According to PMC-Sierra, these capabilities are critical for next-generation IP equipment, such as edge routers, aggregation and POP switches, Web switches, network firewalls and intrusion detection systems.
The transaction will be accounted for as a pooling of interests, PMC-Sierra said.