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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (2664)	8/24/1999 6:04:00 PM
From: Beltropolis Boy	Respond to of 3818

August 24, 1999 5:41pm PMC-Sierra to buy chip company for $400M in stock By Sergio G. Non ZDII PMC-Sierra Inc. (Nasdaq: PMCS) plans to issue more than 4.3 million shares of stock to buy a privately-held maker of chip technology for switches and routers. Mountain View, Calif.-based Abrizio Inc. agreed to be bought by PMC-Sierra for 4.352 million shares, or more than $427.3 million in stock at PMC-Sierra's Tuesday closing price of 98 3/16 per share. Abrizio, a fabless operation, specializes in switch chip fabrics that direct data traveling between ports on ATM networks. The deal will handled as a pooling of interests. PMC-Sierra currently has more than 63 million shares outstanding. Abrizio's products complement PMC-Sierra's stable of chips for high bandwidth networks, the companies said. "The combined strengths of PMC-Sierra and Abrizio will give our customers a compellingly comprehensive solution to their broadband silicon requirements," said Bob Bailey, president and CEO of PMC-Sierra. "This acquisition is designed to further enhance PMC-Sierra's position in the sweet spot of the semiconductor market: broadband infrastructure." Abrizio is privately-held, but the two-year-old company has some well-known backers, including venture capital firms Benchmark Capital and Sequoia Capital. Shares of PMC-Sierra have risen more than sevenfold over the past 10 months, on optimism about the company's position in high speed networking. Of 15 analysts surveyed by Zack's Investment Research, nine rate PMC-Sierra the equivalent of a "strong buy"; the other six have "moderate buy" ratings on the stock.