Intelligent Merger: EZchip to Acquire Tilera for $130M

EZchip Semiconductor announced that it has "..signed a definitive agreement to acquire Tilera Corporation, a privately-held US-based company that develops high-performance multi-core processors, intelligent network interface cards and white-box appliances for data-center networking equipment .. under the terms of the agreement, EZchip will pay Tilera’s stockholders up to $130 million in cash; of which $50 million is payable at closing and up to an additional $80 million is payable subject to the attainment of certain future performance milestones.

EZchip currently expects the acquisition to be neutral to slightly dilutive in 2014 and accretive in 2015 to earnings per share on a non-GAAP basis. Following the closing, Devesh Garg, the CEO of Tilera, will serve as EZchip’s President in charge of all US operations.

The acquisition represents a significant move for EZchip. In particular .. Doubles EZchip’s total available market (TAM): To $2 billion, consisting of NPUs, multi-core CPUs, smart network adapters and appliances, for the data-center and telecom markets [related chart below, from November 2012]

Related posts:

• Network Processors - are they Here to Stay? - here
• EZchip Unveiled 400-Gb wire-speed, C-Programmable, NPU - here
• Tilera and Qosmos Offer Integrated DPI Solution - here
• Tilera: New Network Processor with 5Gbps DPI - here.

See "EZchip to Acquire Tilera, a Leader in High-Performance Multi-Core Processors" - here.