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

To: SJS who wrote (11)	9/26/2000 9:13:15 AM
From: Beltropolis Boy	Respond to of 469

PMC-Sierra To Acquire SwitchOn Networks Acquisition adds high-speed classification and packet processing expertise for Internet Protocol (IP) routing and addresses new market segments including web switches and security systems CAMPBELL, CA, September 26, 2000 -- PMC-Sierra, Inc. (NASDAQ:PMCS) today announced an agreement to acquire privately held packet content processor company, SwitchOn Networks, Inc. for shares with a value of approximately $450 million. The company has approximately 60 employees in Milipitas, California and 30 employees in Pune, India. The transaction, subject to completion, will be accounted for as a pooling of interests. Classification Engines to enable radically more efficient IP Equipment In order to efficiently manage Internet traffic, new generations of equipment must be capable of performing in-depth examination of IP packets at wire-speed and make intelligent decisions for applications such as routing, quality of service, load balancing, URL switching, and security. SwitchOn Network's technology performs complete inspection of packets up to Layer 7, provides policy and content based networking and generates statistics for traffic monitoring and metering to allow for value-added services and billing. These capabilities are critical for next generation IP equipment such as edge routers, aggregation and POP switches, web switches, network firewalls and intrusion detection systems. "The addition of SwitchOn Network's packet classification expertise is a complementary fit to our broadband communications strategy," said Bob Bailey, PMC-Sierra's chairman and CEO. "It expands our IP knowledge base and adds packet processing capabilities to enhance our ability to address IP-centric network applications." Added Bailey "With this acquisition, we gain what we consider to be some of the best packet classification technology in the world, along with knowledgeable and talented design teams in California and India. We continue to be committed to provide best-in-class architectural solutions for our customers and SwitchOn is an important element of this strategy." "We are very pleased to join forces with PMC-Sierra," said Moti Jiandani, president and CEO of SwitchOn Networks. "SwitchOn Networks pioneered the concept of high speed content processing coprocessors. We believe our cutting edge Layer 2 to Layer 7 classification technology combined with PMC-Sierra's extensive broadband communications expertise will result in new classes of edge and policy/content networking equipment." Jiandani stated further, "This combination will allow us to increase our customer base significantly because of PMC-Sierra's extensive market reach. The ultimate winners will be our customers who will now enjoy PMC-Sierra's world class customer support." About SwitchOn Networks SwitchOn Networks Inc., a pioneer in wirespeed packet classification and inspection technology, is in the business of providing standard semiconductor and software components to the emerging market of Content and Policy-based networking. These enable applications such as: QoS, Load Balancing, URL Switching, VPN, Firewalling, etc., at wirespeed exceeding OC-48. The company's patent pending technology enables SwitchOn Networks to build devices that are scalable in both performance and the number of policies they support. The company's products enable next generation network equipment, including web and content switches, CMTS, DSLAM, enterprise routers, edge routers, bandwidth managers, VPNs, Firewalls and Intrusion detection systems.