“We are excited to announce this major milestone today. The acquisition of this highly competitive product is a positive step forward for Tundra and strongly positions the Company for future growth,” said Daniel Hoste , President and Chief Executive Officer, Tundra Semiconductor. “Tundra’s new product strategy will deliver intelligent interconnect products, to provide our customers with a competitive edge in their system designs where performance depends more and more on the I/O and interconnect architecture solutions,” continued Hoste.
Tundra will acquire the product for a total purchase price of $15.4 million USD, with payments impacting the next 3 fiscal years. Tundra expects revenue associated with this product acquisition to begin to impact fiscal year results in 2010 and expects that lifetime revenue will represent approximately 8 to 12 times the total investment cost.