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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (44109)	8/24/1999 8:02:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

A little Sequoia Capital fun after the close.............. seminews.com BURNABY, British Columbia--PMC-Sierra Inc. here today announced an agreement to acquire broadband chip supplier Abrizio Inc. of Mountain View, Calif., for $400 million in stock. The surprise move is intended to strengthen PMC-Sierra's position in fast-growing broadband infrastructure applications, said Bob Bailey, president and CEO of the Canadian chip company... ... "They have assembled an outstanding team of people out of Stanford University, C-Cube, and other places," Bailey said in an interview after announcing the acquisition agreement. "They have come up with an amazing product line for broadband switch fabric chips, and the reason we know about them is we have quiet a few of our own chips designed into the same systems." Those system are just now in the final development stages, and Bailey said he expects revenues from Abrizio's products to take off in the second half of next year. "The revenue potential will be large because there will be tens of thousands of dollars in potential silicon content per system," he said. Bailey believes the acquisition will combine the strengths of PMC-Sierra and Abrizio to give customers "a compellingly comprehensive solution to their broadband silicon requirements. This acquisition is designed to further enhance PMC-Sierra's position in the sweet spot of the semiconductor market -- broadband infrastructure." He described Abrizio's products as serving the "core" of switching equipment while PMC-Sierra's chips reside mostly "on the edge of the network." "This will deepen our penetration in the broadband infrastructure silicon space," he added. Under the agreement, PMC-Sierra will acquire the privately-held company for 4.35 million shares of its stock. The transaction will be accounted for as a pooling of interests. In June 1998, Abrizio raised $6 million in venture funding from Benchmark Capital and Sequoia Capital.