AUGUST 28, 2006 -- Signaling the continuation of the trend toward consolidation, Applied Micro Circuits Corp. (AMCC; search for AMCC) closed its acquisition of Quake Technologies, Inc., and Optical Communication Products (OCP; search for OCP) completed its acquisition of privately held GigaComm Corp.
Quake (search for Quake)provided 10 Gigabit Ethernet (10GE) PHY technology. The company was the first to successfully deliver an entire production-worthy product line for a broad range of distances, from short to long reach.
"We are pleased to announce the successful completion of this acquisition. We look forward to integrating our technology and customer assets in order to develop 10G Ethernet solutions for the enterprise and service provider markets," said Kambiz Hooshmand, president and CEO of AMCC. "Our strategy is focused on converged information and storage networks based on IP and Ethernet. As a result of this acquisition, AMCC is now a leader in the 10G Ethernet market."
Under the terms of the agreement, AMCC acquired all outstanding shares of Quake for approximately $69 million in cash (net of Quake's estimated cash and receivables that AMCC assumed in the deal). AMCC plans to consolidate its design groups in Ottawa into a single facility and continue to benefit from the experienced engineering talent of the Ottawa area.
For its part, OCP paid approximately $20 million for GigaComm, according to the original announcement of the deal. GigaComm was a Taiwan-based supplier of PON components. Founded in 2000, GigaComm had its headquarters and manufacturing facilities in the Hsinchu Science-Based Industrial Park in Taiwan, ROC, and employed approximately 300 people. GigaComm had been privately financed since its inception by a syndicate of institutional and private investors in Taiwan.
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