Chip maker PMC-Sierra said today it has agreed to buy two
privately held semiconductor firms for about $1.3 billion dollars.
The British Columbia-based company said it is issuing 4.8 million stock worth more than $890 million based on yesterday's closing price to purchase AANetcom. PMC said it
will also buy Extreme Packet Devices for about $415 million worth of
PMC-Sierra's chips are used in the equipment that processes voice, data
and streaming media traffic over a single line.
AANetcom employs 50 people and is based in Allentown, Pa. and San Jose,
Calif. and builds technology to boosts the performance of routers, while
Extreme Packet Devices has more than 60 employees located in Kanata, Ontario and makes devices that make routers and switches work better.
PMC-Sierra stock was up $9 dollars, or 5.01 percent, in early morning
trading today at 194.72.