AMCC, MMC Merger Second Largest In Semiconductor History

ByBridgeNews San Diego-based Applied Micro Circuits Corp. (AMCC) said it will buy Sunnyvale, Calif.-based MMC Networks for about $4.5 billion in stock, making it the second-largest deal in semiconductor history. AMCC said its products would be complemented by MMC's network processors to meet the demand for advanced optical networking systems in the rapidly expanding communications-management market. The deal is second to Texas Instruments' June acquisition of Burr-Brown Corp., a manufacturer of analog and mixed signal integrated circuits, for $7.6 billion. MMC Networks manufactures computer network processors and communications management technology. AMCC designs, develops, manufactures, and markets high-performance, high-bandwidth silicon solutions for optical networks. The pending merger is the next step in AMCC's strategy to provide complete solutions in the optical networking market and to expand into new markets for high-speed communications products, according to a press release about the merger. "AMCC is the ideal partner for us," says Doug Spreng, president and CEO of MMC. "We share a common vision and commitment to delivering high-performance communications solutions that provide true value to our customers. AMCC's strength in high-end optical networking, combined with MMC's intelligent networking solutions, will allow our customers to achieve the fastest time to market with advanced features."