CAMARILLO, Calif.--Vitesse Semiconductor Corp. here today (December 29, 2003) said it has acquired communications-chip maker Cicada Semiconductor Corp. for approximately $66 million in cash.
Cicada, an Austin, Texas-based supplier of transceivers for 10/100/1000-megabit-per-second applications, will reduce its workforce to approximately 40 employees when the transaction is completed. The transaction is subject to customary closing conditions and is anticipated to close in the first calendar quarter of 2004.
Vitesse expects the Cicada products to contribute about $10 million in revenues in calendar 2004, with a majority to be realized in the second half of the year as customers upgrade their 10/100-megabit-per-second networks to Gigabit Ethernet speeds.
"This is a natural combination for both companies," said Lou Tomasetta, president and chief executive officer of Vitesse, in a statement. "Vitesse and Cicada have been jointly selling gigabit speed switch solutions for over a year, comprised of Vitesse's LAN switches and Cicada's Gigabit Ethernet copper transceivers," he said.
"We expect this acquisition to double our revenues in the LAN switch market and to position us to gain share as the market embraces gigabit switch products," he added.