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Vitesse to acquire Orologic
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March 28, 2000: 3:59 p.m. ET
Vitesse paying $450M in stock for privately held semiconductor maker
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NEW YORK (CNNfn) - Vitesse Semiconductor Corp., a developer and marketer of high-performance integrated circuits, said Tuesday it is set to acquire privately held Orologic Inc. for $450 million in common stock.
Shares of Vitesse jumped 9 to 104-15/16 in afternoon trading on the Nasdaq.
Camarillo, Calif.-based Vitesse, which designs and develops high bandwidth communications integrated circuits for systems manufacturers and optical networking markets, reported revenue of $89.5 million in the last quarter.
Company officials could not be reached for comment on the transaction, which is expected to be completed before the end of April.
Orologic Corp., based in Morrisville, N.C., specializes in developing high performance system-on-chip solutions that enable data packet processing at OC-48 and OC-192 rates.
Raif Onvural, president and CEO of Orologic, said the merger will enable the companies to combine resources to develop end-to-end merchant solutions for ATM and IP applications.
In connection with the proposed merger, the Santa Clara, Calif.-based Alliance Semiconductor Corp. (ALSC: Research, Estimates), through its venture arm, Alliance Venture Management LLC, will get about 852,000 shares of Vitesse (VTSS: Research, Estimates) for its equity interest in Orologic.
Alliance shares were up 9/16 to 24-9/16 in afternoon trading on the Nasdaq.
Alliance, which designs, develops and markets its products to the desktop and PC networking, telecommunications and consumer markets, said it will report an estimated pre-tax gain of $68 million on completion of the Vitesse-Orologic merger.
David Eichler, VP finance and CFO at Alliance, said the gain will be based on the closing price of Vitesse on the date of the merger. 
-- from staff and wire reports
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