RF and opto expert MACOM gets into digital by acquiring Applied Micro

RF and optical physical layer chip expert MACOM to acquire 64-bit ARM processor core based computing and networking chip maker Applied Micro Circuits Corporation for approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro. MACOM to divest the compute business of Applied Micro within the first 100 days of closing. MACOM finds AppliedMicro’s connectivity business a highly complementary to its product portfolio by addition of OTN framers, MACsec Ethernet networking components and the Applied Micro's leading single-lambda PAM4 platform. AppliedMicro’s single lambda PAM4 solution is expected to become industry standard for enterprise and Data Center connectivity. Through this deal MACOM to grow faster in cloud computing and datacentre market. John Croteau, President and Chief Executive Officer said, "This transaction will accelerate and expand MACOM’s breakout opportunity in Enterprise and Cloud Data Centers. MACOM will now be able to provide all the requisite semiconductor content for optical networks - analog, photonic and PHY - from the switch to fiber for long haul, metro, access, backhaul and Data Center. AppliedMicro’s 100G to 400G single-lambda PAM4 platform should perfectly complement MACOM's leadership in analog and photonic components for Data Centers. “AppliedMicro also provides value-added technologies...