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PMC-Sierra Completes Acquisition of Passave, a Leading Provider of System-on-Chip Solutions for Fiber to the Home Access Market
SANTA CLARA, Calif.—(BUSINESS WIRE)—May 4, 2006—
PMC-Sierra, Inc. (Nasdaq:PMCS) today announced it has
completed the acquisition of Passave, Inc., a leading developer of
system-on-chip semiconductor solutions for the Fiber To The Home
(FTTH) access market.
In accordance with the terms of the transaction as announced on
April 4th 2006, PMC-Sierra has acquired all of the outstanding shares
of Passave in a stock-for-stock transaction valued at approximately
$300 million. PMC-Sierra expects to incur normal acquisition-related
costs in connection with this transaction, including one-time charges
and ongoing amortization related to the acquired business.
Passave's semiconductor solutions enable Service Providers to
offer so-called "Triple Play" services (voice, video and data) at up
to 1Gbps over Passive Optical Networking (PON) equipment. The Passave
product line includes system-on-chip solutions for Optical Line
Terminals for the Central Office as well as Optical Network Terminals
and Optical Network Units solutions for residential termination
equipment. Passave has delivered more than two million ONU devices
that have been deployed in NTT's Fiber To The Home broadband access
network.
Safe Harbor Statement
PMC-Sierra's forward-looking statements related to the acquisition
involve a number of risks and uncertainties. Actual results may differ
from projections for varied reasons. Acquisition-related costs may be
higher than expected. Both PMC-Sierra's and Passave's financial
results can be affected by a wide range of risks detailed in
PMC-Sierra's Securities and Exchange Commission filings, including
changes in semiconductor market conditions, demand for semiconductor
products, the level of orders that are placed and shipped within the
quarter, the impact of competitive products and pricing, and
technological and product development risks. PMC-Sierra does not
undertake any obligation to update the forward-looking statements.
About PMC-Sierra
PMC-Sierra(TM) is a leading provider of broadband communications
and storage semiconductors for metro, access, fiber to the home,
wireless infrastructure, storage, laser printers and customer premises
equipment. For more information on Passive Optical Networking and
fiber to the home semiconductor solutions, visit www.pmc-sierra.com.
PMC-Sierra offers worldwide technical and sales support, including a
network of offices throughout North America, Europe, Israel and Asia.
The company is publicly traded on the NASDAQ Stock Market under the
PMCS symbol and is included in the S&P 500 Index.
(C) Copyright PMC-Sierra, Inc. 2006. All rights reserved. PMC,
PMCS, PMC-Sierra, and "Thinking You can Build On" are trademarks of
PMC-Sierra, Inc. All other trademarks are the property of the
respective owners.
Contact:
PMC-Sierra, Inc.
Alan Krock, 408-988-1204
or
David Climie, 408-988-8276
or
Susan Shaw, 408-988-8515
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