Physpeed Co. Ltd., in Camarillo, was acquired on Tuesday by semiconductor maker MaxLinear Inc. in a deal valued at $11 million.
Physpeed makes integrated circuits for high-speed data centers, and optical-networking and telecommunication-equipment manufacturers – markets that MaxLinear, in Carlsbad, is seeking access to.
MaxLinear semiconductors are currently in use in the cable and satellite-broadband communications markets.
“Physpeed’s expertise in high-speed analog design, combined with MaxLinear’s proven digital signal processing capabilities, will bring to market solutions that will uniquely enable the explosive data traffic growth generated from smartphones and tablets, and over-the-top streaming video,” said MaxLinear Chief Executive Kishore Seendripu, in a prepared statement.
The merger agreement provides for earn-outs of up to $750,000 to Physpeed shareholders if certain revenue milestones are reached next year and in 2016.
The boards of directors of both companies have approved the acquisition, which is expected to close by the end of the year.