Vitesse to acquire Orologic
|
![](technology14.01.jpg) |
March 28, 2000: 3:59 p.m. ET
Vitesse paying $450M in stock for privately held semiconductor maker
|
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.
![graphic](vitesse.jpg)
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. ![Back to top](/images/bug.gif)
-- from staff and wire reports
|
|
Vitesse
Orologic
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
![graphic](https://i.cdn.turner.com/money/images/dot.gif) |
![](/images/advertisement.120.gif)
|