Sunday, May 31, 2009

NetLogic to Acquire RMI for $175 Million

NetLogic Microsystems agreed to acquire RMI, a developer of multi-core, multi-threaded processors, in a deal valued at approximately $175 million.

The merger is expected to enable NetLogic Microsystems to further expand into the high-performance "data-in-flight" processing segment. RMI's XLP, XLR and XLS Multi-Core, Multi-Threaded Processors will complement NetLogic Microsystems' existing portfolio of knowledge-based processors, content processors, network search engines and 10-100 Gigabit Ethernet PHY products. By expanding upon the IP and product portfolio, the merger is further expected to strengthen and expand NetLogic Microsystems' Tier 1 OEM customer base as well as to diversify its end market penetration.

RMI's high-performance Multi-Core, Multi-Threaded Processors enable the delivery of rich IP content and services, such as video, 3G/4G mobile services, voice-over-IP and enhanced security, over tomorrow's wireline and wireless networks. In addition, RMI offers a family of Ultra Low-Power Processors for high-volume enterprise, industrial and media-rich applications, where their unique blend of low power core, media architecture, and connectivity has created a highly differentiated value proposition. The rapid proliferation and growing market for these power-sensitive connected devices are fueling the demand for higher performance, mission-critical infrastructure equipment in core, edge, metro, access, enterprise, storage and SMB networks.

"We are excited by the opportunities presented by this merger because of the remarkable synergies in our technologies, markets, customers, geographic locations and company cultures," said Ron Jankov, president and CEO of NetLogic Microsystems. "Further, we believe that our two companies' individual strengths can be successfully leveraged into tremendous growth potential for the combined entity. Similar to the growth drivers that are opening up new opportunities for our knowledge-based processors and high performance physical layer products, the rapid growth in converged IP traffic and demand for the support of advanced IP services such as video, 3G/4G, voice-over-IP and enhanced security, are opening up new opportunities for high-performance Multi-Core, Multi-Threaded Processors."

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