SAN DIEGO, California -- Applied Micro Circuits Corporation said Monday (September 29, 2003)that it has agreed to buy IBM's PowerPRS switching fabric product for approximately $47 million.
The acquisition is a mix of asset purchase and technology licensing and IBM is to manufacture the product line for AMCC as part of its foundry business, AMCC said.
In addition, IBM and AMCC are following local legal requirements and due processes regarding the sale to AMCC of certain related assets of La Compagnie IBM France, a French affiliate of IBM, for approximately $3 million.
IBM cut a similar deal with Integrated Device Technology Inc. whereby it sold its position in networking memory in return for a foundry position with the buyer (see September 2 story).
"We continue to strengthen our market leadership through both organic growth and strategic acquisitions," said Dave Rickey, chairman, president and chief executive officer of AMCC, in a statement. "The acquisition of the IBM switch fabric product line allows us to offer our customers an extensive, compatible set of scalable switching solutions targeted at multiple applications, including the core, metro, wireless, and SAN markets. This is a perfect complement to our existing switch fabric portfolio."
IBM's Packet Routing and Switching (PRS) product line is designed into numerous leading OEM platforms that are now in production and ramping to volume, AMCC said.