SAN JOSE, Calif. -- Atheros Communications Inc. has signed a definitive agreement to acquire Opulan Technologies Corp., a privately-held Chinese fabless semiconductor company specializing in solutions for passive optical networking (PON) and broadband access aggregation (MUX). The deal is valued at $72 million.
Atheros’ line of Ethernet switching solutions will complement Opulan’s 1G/10G EPON (Ethernet PON) and MUX product portfolio.
With the acquisition of Opulan, Atheros gains 111 employees located in Shanghai and Beijing, China. Under the terms of the agreement, Atheros will pay Opulan shareholders approximately $72 million in cash, and may pay additional cash to Opulan shareholders subject to the attainment of earn-out objectives applicable to the acquired business during a 12-month period following the closing date.
The transaction, which is expected to close in the third quarter of 2010, remains subject to regulatory requirements and other customary closing conditions. The acquisition has been approved by the board of directors of each company and a majority of Opulan’s shareholders have consented to the transaction.
Atheros also posted its results. Revenue in the second quarter of 2010 was a record $238.2 million, up 11 percent compared to $214.7 million reported in the first quarter of 2010. Second quarter 2010 revenue increased 112 percent compared to $112.2 million reported in the second quarter of 2009.
In accordance with U.S. generally accepted accounting principles (GAAP), the company recorded net income in the second quarter of 2010 of $29.7 million or $0.41 per diluted share. This compares to GAAP net income of $19.7 million or $0.27 per diluted share in the first quarter of 2010. Net loss in the second quarter of 2009 was $0.3 million or $0.00 per diluted share. Cash, cash equivalents and marketable securities were $508.4 million at June 30, 2010, up $64.8 million from the balance at March 31, 2010.