AMCC Acquires Quake for $69M

Network technology provider Applied Micro Circuits Corp. (AMCC) announced yesterday that it will acquire Quake Technologies Inc., a privately-held fabless semiconductor company that makes 10 Gigabit Ethernet physical layer (PHY) technology, for $69 million in cash.

Quake was founded in 2000 and employs approximately 50 people, the majority of whom are based in Ottawa, Canada. Quake's President and CEO Daniel Trepanier will remain at the helm under AMCC President and CEO Kambiz Hooshmand.

AMCC said the acquisition allows the company to enter into the enterprise networks and data center markets, which are experiencing a rapid transition from 1GbE to 10GbE. The company cited market analysis conducted by the Dell'Oro group that predicts 10GbE ports will grow from approximately 500,000 ports shipped in 2006 to over 9 million in 2010. 10GbE is now one of the fastest growing networking technologies, AMCC said.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close at the end of August. For more information, visit: www.amcc.com