Tuesday, January 24, 2006

NetLogic to Acquire Cypress's Network Search Engine

NetLogic Microsystems will acquire all of the assets and intellectual property associated with Cypress's standard Network Search Engine products. The deal includes the Ayama 10000, Ayama 20000, and NSE70000 Network Search Engine families as well as the Sahasra 50000 Algorithmic Search Engine family. Cypress, meanwhile, will retain and continue to support its custom TCAM1 and TCAM2 products. NetLogic Microsystems will pay approximately $50 million in NETL common stock upon closing, and, if certain revenue targets are achieved in a 12-month time period, up to an additional $10 million in cash and approximately $10 million in NETL stock.

"This acquisition is positive in numerous ways," said Ron Jankov, president and CEO of NetLogic Microsystems. "The Sahasra algorithmic technology is synergistic with our recently announced Layer 7 processing initiative. We see this algorithmic technology as a critical component in driving towards low-cost Layer 7 applications acceleration and security processing solutions. This acquisition gives us a four-year head start in the development of products to address this low-cost requirement, based on Cypress's leadership position in developing this advanced technology."http://www.netlogicmicro.comhttp://www.cypress.com