AMCC to Acquire IBM's PowerPC for $227 Million

Applied Micro Circuits Corporation (AMCC) agreed to acquire intellectual property and a portfolio of assets associated with IBM’s 400 series of embedded PowerPC processors for $227 million in cash. The processors, which are used in Internet, communication, data storage, consumer and imaging applications, generated about $55 million in revenues in 2003. The deal includes a team of design engineers and support personnel. It also provides AMCC with a license for IBM’s Power architecture. AMCC said the acquisition would help it expand its storage and WAN business, while giving it an entry into the market for pervasive computing applications.. http://www.amcc.com