SAN JOSE, Calif. - Applied Micro Circuits Corp., now called AppliedMicro, has entered into a definitive stock purchase agreement to acquire Tpack A/S of Copenhagen, Denmark.
Under the terms, AppliedMicro (Sunnyvale, Calif.) will pay $32 million in cash plus up to $5 million in earn-outs dependent upon revenues and product development milestones scheduled over the next eighteen months.
The acquisition of Tpack, a provider of silicon intellectual property (IP) for mapping and switching functions to leading telecom and networking equipment suppliers, will enable AppliedMicro to expand its presence in the optical transport network (OTN) and carrier Ethernet markets.
Founded in 2001, TPACK has 37 employees. The transaction is expected to be profit neutral, excluding transaction costs, for our fiscal year ending March 31, 2011 and to add two cents to projected earnings per share for fiscal year ending March 31, 2012.