Wednesday, October 20, 2010

PMC-Sierra to Acquire Wintegra for Mobile Backhaul Network Processors

PMC-Sierra has agreed to acquire Wintegra, a privately-held developer of networking silicon based in Austin, Texas, for approximately $213 million in cash.

Wintegra's WinPath family of network processors is used in 3G/4G base stations, fiber and microwave cell-site routers, as well as radio network controllers deployed globally in mobile networks. The has 165 employees with the majority of its R&D development team located in Ra'anana, Israel, and Austin, Texas. The acquisition of Wintegra expands PMC-Sierra's presence in Israel, where its FTTH business is based. Wintegra's founders, Kobi Ben-Zvi and Robert O'Dell, will join PMC-Sierra and bring an exceptional team with strong expertise in silicon design, networking software, and system integration.

PMC-Sierra said the acquisition accelerates its product offering in the IP/Ethernet packet-based mobile backhaul equipment market segment, which is expected to grow 35 percent annually from $1.2 billion in 2009 to $5.5 billion in 2014.

"Carriers are moving rapidly to IP-based mobile backhaul, and Wintegra's product offering is uniquely positioned to enable this packet transition and breakthrough the bandwidth bottlenecks faced in mobile networks," said Greg Lang, president and chief executive officer of PMC-Sierra. "Combined with our broad portfolio of communications infrastructure products, PMC-Sierra is leading the industry in the migration to IP-based networks in mobile backhaul, metro optical transport, and residential Fiber To The Home."

"We've already been partnering with PMC-Sierra to create mobile backhaul solutions that combine our multi-service WinPath processors and networking software with PMC-Sierra's extensive portfolio of framers and mappers," said Kobi Ben-Zvi, founder and chief executive officer of Wintegra. "Given the strong strategic fit between the two companies, joining forces will allow us to further accelerate the industry's transition to IP-based networks."