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Network processor specialist, EZchip Semiconductor, is to acquire Tilera. The deal is valued at $130 million in cash: $50 million when the deal closes, and up to $80 million more depending on performance targets being met.
Bob Wheeler, The Linley Group
Tilera's products include multi-core processors, intelligent network interface cards (NICs) and one rack-unit (1RU) network - 'whitebox' - appliances used for security applications.
Acquiring Tilera will broaden EZchip's market. Tilera's devices are used for network appliances, enterprise routers, cloud computing, video and voice encoders, security, deep-packet inspection, load-balancing, and emerging applications such as software-defined networking (SDN) and network functions virtualisation (NFV).
EZchip's first acquisition will also broaden the company's US presence and customers: Tilera has 100 customers including Brocade, Check Point Software Technologies, Cisco, Fujitsu, Harmonic, MikroTik and ZTE.
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