Cypress Semiconductor Corp. (NYSE:CY), a leader in programmable solutions, and NetLogic Microsystems, Inc. (NASDAQ:NETL), the leader in the design and development of knowledge-based processors, announced that they have signed and closed a definitive agreement whereby NetLogic Microsystems has acquired certain assets associated with Cypress’s network search engine products targeting the high-volume desktop switching market. Upon closing, NetLogic Microsystems paid Cypress $12.0 million in cash plus the cost of inventory.
“The sale of our network search engine assets is part of our overall strategy to focus on programmable products and solutions,” said T.J. Rodgers, president and CEO of Cypress. “By working with NetLogic Microsystems, the leader in the knowledge-based processor and network search engine market, we are ensuring that our customers will continue to be fully supported with these products moving forward.”
“The desktop switching market is on the cusp of significant growth in the coming years, and we’re excited to participate in this growth through the combination of Cypress products resulting from this acquisition and our NETLite(TM) processors,” said Ron Jankov, president and chief executive officer at NetLogic Microsystems. “The acquisition enhances our comprehensive product portfolio and strengthens our leadership in enterprise, service-provider and datacenter end-markets.”
With the addition of Cypress’s portfolio of advanced, innovative products for desktop switching, NetLogic Microsystems now holds the industry’s most complete and most advanced portfolio of knowledge-based processors and network search engine solutions, spanning Layer 2 through Layer 7 networking. This uniquely positions NetLogic Microsystems to provide all-layer high speed packet acceleration technologies to a broad range of networking and Web 2.0-enabling internet infrastructure, including security appliances, WAN accelerators, application accelerators, core and metro routers, high-end enterprise and desktop switches.
The acquisition expands NetLogic Microsystems’ revenue base and extends its market leadership into the desktop switching market segment. This provides NetLogic Microsystems with the scale and scope to further expand its R&D investments for continued innovation leadership, and to continue to deliver its best-in-class products and solutions to the networking and communications industries. NetLogic Microsystems expects the market for desktop switching search engines to experience healthy growth in the coming years, driven by the increasing adoption and expansion of advanced IP features such as quality of service (QoS) and access control lists (ACLs) in systems closer to the end user.
Cypress’s desktop switching search engine products are incorporated into the industry-leading enterprise desktop switching product family from a leading original equipment manufacturer (OEM). The desktop switching search engines from Cypress will complement NetLogic Microsystems’ leadership in knowledge-based processing, and will strengthen the company’s existing relationship with the OEM customer. In addition, NetLogic Microsystems expects to leverage significant manufacturing efficiencies to deliver high-volume scalability for its desktop switching search engine family of products.
Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. Cypress offerings include the PSoC Programmable System-on-Chip, USB controllers, general-purpose programmable clocks, and memories. Cypress also offers wired and wireless connectivity solutions ranging from its WirelessUSB radio system-on-chip, to West Bridge and EZ-USB FX2LP controllers that enhance connectivity and performance in multimedia handsets. Cypress serves numerous markets including consumer, computation, data communications, automotive, industrial, and solar power. Cypress trades on the NYSE under the ticker symbol CY.
About NetLogic Microsystems
NetLogic Microsystems, Inc. (NASDAQ:NETL), a fabless semiconductor company headquartered in Mountain View, California, designs, develops and markets high performance processors for a variety of advanced wireline and mobile wireless networking systems, such as routers, switches, wireless infrastructure equipment, network security appliances, network access equipment and networked storage devices. NetLogic Microsystems’ processors employ an advanced processor architecture and a large knowledge or signature database containing information on the network, as well as applications and content that run on the network, to make complex decisions about individual packets of information traveling through the network. Processors from NetLogic Microsystems significantly enhance the ability of networking original equipment manufacturers (OEMs), to supply network service providers with systems offering more advanced functionality for the Internet, such as high-definition video delivery over the Internet (IPTV), voice transmission over the Internet (VoIP), unified threat management (UTM), virtual private networks (VPN), rich content delivery over mobile wireless networks, and streaming video and audio. For more information about products offered by NetLogic Microsystems, call 650.961.6676.
Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. NetLogic Microsystems, the NetLogic Microsystems logo and NETLite are trademarks of NetLogic Microsystems, Inc.