PMC-Sierra Takes Shine to SwitchOn Networks

PMC-Sierra Inc. , a maker of broadband communication
semiconductors, Tuesday acquired packet content processor company, SwitchOn
Networks Inc.

The stock-for-stock deal is valued at $450 million. Upon completion, the
transaction will be accounted for as a pooling of interests.

The technology provided by SwitchOn is critical to the creation of
next-generation IP equipment such as edge routers, aggregation and POP
switches, Web switches, network firewalls and intrusion detection systems,
according to Bob Bailey, PMC-Sierra’s
chairman and CEO.

“The addition of SwitchOn Network’s packet classification expertise is a
complementary fit to our broadband communications strategy,” said Bailey.
“It expands our IP knowledge base and adds packet processing capabilities to
enhance our ability to address IP-centric network applications.”

PMC-Sierra designs, develops, markets and supports high-performance
semiconductor networking solutions for use in the high-speed transmission
and networking systems of the global telecommunications and data
communications infrastructure.

For the six months ended June 25, 2000, revenue totaled $236.9 million,
up from $110.3 million a year before.

SwitchOn, a privately held company, has 60 employees in Milipitas,
Calif., and 30 employees in Pune, India.