November 1, 2005 – PMC-Sierra Inc. has announced that it has entered into a definitive agreement with Kohlberg Kravis Roberts & Co. and Silver Lake Partners to acquire the storage semiconductor business of Agilent Technologies for approximately $425 million in cash. The storage semiconductor business is part of Agilent’s Semiconductor Products Group, which KKR and Silver Lake Partners are in the process of acquiring.
The storage semiconductor business of Agilent’s Semiconductor Products Group (SPG) provides Fibre Channel protocol controllers with its Tachyon product line and is developing next-generation multiprotocol controllers supporting Fibre Channel and SAS/SATA/iSCSI storage systems, as well as other storage-related products.
When closed, the acquisition is expected to be immediately accretive for PMC-Sierra.
Martin Scott, VP and GM of the storage semiconductor business at SPG, said: “The management team of the storage semiconductor business supports this combination with PMC-Sierra as the most compelling way for us to accelerate product development. This is a big win for our customers. We look forward to becoming an important part of PMC-Sierra’s growth strategy.”
The business being acquired by PMC-Sierra, which currently operates as the I/O Solutions Division of Agilent’s Semiconductor Products Group, employs approximately 240 employees and has design centers located in Santa Clara, Roseville (CA), and Singapore. PMC’s acquisition is expected to close in January, subsequent to the expected closing on or near December 1, 2005, of a previously announced transaction in which KKR and Silver Lake Partners will acquire SPG from Agilent.