Physpeed's products include physical medium devices and clock data recovery chips that can operate at data rates up to 100-Gbits per second and are set to be extended to 400-Gbits per second.
The acquisition of Physpeed will help MaxLinear expand into the data center market as well as into metro and long-haul telecommunications, the company said MaxLinear estimates that the total available market for 40G and 100G optical integrated circuits is approximately $500 million in 2014, and that the annual market is set to triple over the next four years.
In addition to the $11.0 million offered to buy Physpeed the agreement calls for an additional $750,000 to be available as a pay out for the achievement of revenue goals in 2015 and 2016.
"Physpeed's expertise in high-speed analog design, combined with MaxLinear's proven low-power digital CMOS mixed signal-integration and DSP capabilities, will bring to market solutions that will uniquely enable the explosive data traffic growth generated from smartphones and tablets, and over-the-top streaming video, in addition to cloud computing and data analytics in hyper-scale data centers,” said Kishore Seendripu, CEO of MaxLinear, in a statement.
The acquisition has been approved by both boards of directors but has still to be approved by Physpeed shareholders. The deal is expected to close before the end of the calendar year.
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