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PMC-Sierra completes acquisition of FTTH vendor Passave

PMC-Sierra Inc. today announced it has completed the acquisition of Passave Inc., a developer of system-on-chip se...


May 4, 2006  


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PMC-Sierra Inc. today announced it has completed the acquisition of Passave Inc., a developer of system-on-chip semiconductor products for the Fiber To The Home (FTTH) access market.

In accordance with the terms of the transaction as announced on April 4, PMC-Sierra has acquired all of the outstanding shares of Passave in a stock-for-stock transaction valued at approximately US$300 million.

The company, which is based in Burnaby, B.C. and Santa Clara, Calif., says it expects to incur normal acquisition-related costs in connection with the transaction including one-time charges and ongoing amortization related to the acquired business.

Passave’s semiconductor offerings enable service providers to offer Triple Play services (voice, video and data) at up to 1 Gbps over Passive Optical Networking (PON) equipment.

Its 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.

The company employs an estimated 150 employees worldwide and has facilities in Herzliya, Israel, Santa Clara and Tokyo.