AppliedMicro to Acquire TPACK to Support Evolving OTN Standards

AppliedMicro, also known as Applied Micro Circuits, has signed a stock purchase deal to acquire Copenhagen-based TPACK.

AppliedMicro will shell out $32 million in cash in addition to a maximum of $5 million in cash earn-outs for the acquisition. The earn-outs depend mainly on the product development benchmarks and TPACK revenues over the coming 18 months.

The SOFTSILICON products of TPACK support the new optical and packet network standards to be deployed very fast, with versatility for Tier 1 device vendors. The solutions of TPACK are executed in the Altera FPGA equipment, and they address the needs of equipment vendors. The solution increases the time-to-market for 100, 40, and 10 Gbps OTN routing and switching solutions. As OTN standards keep changing, AppliedMicro will build standard reference designs to retain the software compatibility and provide low power and cost.

AppliedMicro’s marketing and business development for transport products head, George Jones stated that TPACK's IP will provide the company with versatility to fulfill the requirements of the customer and deliver high performance in the market. TPACK’s Chief Executive Officer, Colin L.M. Macnab commented that the acquisition would enable OEMs to move from first-to-market solutions to volume production through HardCopy, and maintain an integrated software and hardware architecture.