Chip maker PMC-Sierra to buy two semiconductor firms
The British Columbia-based company agrees to purchase privately held AANetcom and Extreme Packet Devices 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 stock.
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.