Zarlink Semiconductor today announced the purchase of the optical I/O (input/output) business of Torrance, Calif.-based Primarion Inc., a supplier of digital power conversion integrated circuits (ICs), for $7 million in cash. The purchase includes Primarion's optical I/O assets and intellectual property. Zarlink said it intends to retain all 10 of Primarion's I/O group employees and that it expects the acquisition to generate approximately $3 million in revenue in fiscal 2007. The deal isn't expected to materially affect earnings for 2006, Zarlink said. Primarion's I/O business, based in Phoenix, Ariz., makes laser driver and optical receiver ICs used in multilane, parallel fiber optic modules. Several global customers have incorporated Primarion's physical layer I/O products into optical modules used in enterprise data centers for interconnect applications such as Ethernet, Fibre Channel and proprietary VSR (very short reach) optical links, Zarlink said. Primarion's I/O products include laser drivers, transimpedence and post amplifier circuits supporting wireline speeds of 1 Gb/s to 10 Gb/s. Zarlink said the acquisition will enhance its ability to deliver complete optical solutions that meet the demand for higher bandwidth. "There are exciting growth prospects for parallel optics in emerging markets such as high-performance computer interconnect, industrial automation and military applications, as well as telecom," said Stan Swirhun, senior vice president and general manager, Zarlink Optical Products Group. Zarlink's optical products group designs and manufactures parallel fiber optic modules and a portfolio of discrete optical products, including serial bidirectional components, LEDs, laser transmitters, detectors and receivers. For more information, visit: www.zarlink.com